ANNUAL REPORT 2019 ANNUAL

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ANNUAL REPORT 2019 Building on the initiatives of previous years, continued to expand and to enrich its digital business to shape the future through internal collaboration, synergies, and partnerships within the digital ecosystem at large. Telkomsel continued to expand and to enrich its digital business

At the same time, Telkomsel strove to improve customer experience and satisfaction as key drivers of long-term success. (in billion rupiah) (in million) DIGITAL BUSINESS DATA USERS REVENUE 58,237 110.3 23.1% 3.5% DATA 50,550 LTE USERS 88.3 22.3% (in million) 61.3% DIGITAL SERVICES 7,687 29.0%

2019 63.9% Digital 2018 Business 53.0% Contribution

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PT Telekomunikasi Selular improved MOMENTUM Telkomsel has successfully delivered growth and revenue from data supported by solid digital products and services offerings, as shown by TOTAL BTS improved momentum in 2019.

212,235 (in gigabyte) 12.2% Consumption/ 2019 Data User / BTS 54.7% 5.2 161,938 16.7% 2018 3.4

(in terabyte) PAYLOAD 6,715,227 53.6%

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ANNUAL REPORT 2019 Highlights of the Year

6 Key Performance Company 8 Financial Highlights at a Glance 9 Operational Highlights

10 2019 Event Highlights 52 Telkomsel in Brief

18 Awards & Accolades 53 Share Ownership History

23 Iso Certification 54 Organization Structure

54 Key Products & Services

56 Milestones

Business Review Remarks from 60 Vision and Mission

the Management 61 Corporate Strategy in Brief

62 Transformation Program

65 Marketing 26 Remarks from the President Commissioner 72 Digital Services 30 The Board of Commissioners 83 Sales 32 Profile of the Board of Commissioners 88 Information Technology 36 Remarks from the President Director 92 Network 40 The Board of Directors 94 Human Capital Management 42 Profile of the Board of Directors 100 Synergy

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PT Telekomunikasi Selular Corporate Social Responsibility

126 CSR Supports the Vision and Mission of the Company

126 Telkomsel CSR Objectives

126 CSR and Sustainability

126 CSR Strategy Good Corporate 126 Education Governance 128 Digital Citizenship 132 Community Empowerment and Well-being

136 Philanthropy

105 Code of Conduct

General Meeting of 105 Shareholders

Independence of Board of 105 Commissioners and Board Management of Directors

105 The Board of Commissioners Discussion &

Committees under the 108 Analysis Board of Commissioners

110 The Board of Directors 142 Global and Macroeconomic Review 112 Remuneration 142 Business Review and Industry Outlook 112 External Audit 143 Overview of 2019 Performance 113 Whistleblowing 143 Operational Results 113 Corporate Secretary 144 Financial Results 113 Investor Relations 150 Responsibility for the 2019 Annual Report 114 Internal Audit

115 Enterprise Risk Management

119 Regulatory Management Additional Information

123 Litigation Case 153 Abbreviations 154 List of GraPARI

170 Corporate Data

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ANNUAL REPORT 2019 Revenues EBITDA & EBITDA Margin

in trillion Rupiah in trillion Rupiah

93.2 89.2 91.1

53.6 47.4 49.2

57.5% 53.2% 54.0% EBITDA Margin

2017 2018 2019 2017 2018 2019

Total Customer Base Data Users

in million in million

196.3 163.0 171.1

110.3 105.8 106.6

2017 2018 2019 2017 2018 2019

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PT Telekomunikasi Selular Hig h lig ts of t e Year

Net Income & Total Assets Net Income Margin in trillion Rupiah in trillion Rupiah

85.7 82.7 82.7

30.4 25.5 25.8

32.6% 28.6% 28.3% Net Income Margin

2017 2018 2019 2017 2018 2019

Total BTS Roll-Out Total BTS On-Air & Total 3G/4G BTS in thousand in thousand

212.2 189.1 160.7

161.9 3G/4G BTS 138.8 31.7 110.4 28.4 23.2

2017 2018 2019 2017 2018 2019

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ANNUAL REPORT 2019 Description (in billion Rupiah) 2019 2018 2017 2016 2015

Balance Sheet

Current Assets 18,657 16,836 21,098 28,818 25,660 Fixed Assets 55,229 56,899 56,074 54,259 54,112 Other Non - Current Assets 8,844 8,916 8,576 6,704 4,314 Total Assets 82,730 82,650 85,748 89,781 84,086 Current Liabilities 20,892 20,737 23,031 21,891 20,020 Non-Current Liabilities 12,629 10,767 8,587 8,520 12,565 Equity 49,209 51,147 54,130 59,370 51,502 Total Liabilities and Equity 82,730 82,650 85,748 89,781 84,086

Profit and Loss

Revenues 91,088 89,246 93,217 86,725 76,055 Expenses (Include Depreciation & others) 56,134 54,707 53,164 49,502 46,377 EBITDA 49,218 47,439 53,592 49,781 42,602 Net Income 25,799 25,536 30,395 28,195 22,368

Cash Flows

Cash Flows from Operating Activities 41,478 36,910 39,571 42,805 36,359 Cash Flows for Investing Activities (13,448) (16,095) (13,984) (12,794) (12,951) Cash Flows from (for) Financing Activities 439 2,998 (710) (4,731) 2,077 Cash Dividend (26,382) (27,865) (34,010) (19,401) (21,533) Cash and Cash Equivalents at End of Year 8,583 6,497 10,548 19,681 13,802

Financial Ratios

EBITDA Margin1 54% 53% 57% 57% 56% Net Income Margin2 28% 29% 33% 33% 29% Return on Assets3 31% 30% 35% 32% 27% Return on Equity4 51% 49% 54% 51% 43%

Notes: 1. eBITDA divided by Revenues 2. Net Income divided by Revenues 3. Net Income divided by Average Total Assets 4. Net Income divided by Average Total Equity

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PT Telekomunikasi Selular Hig h lig ts of t e Year

2019 2018 2017 2016 2015

Customers - in thousands

Postpaid 6,376 5,400 4,739 4,180 3,509 Prepaid 164,729 157,587 191,583 169,740 149,131 Total 171,105 162,988 196,322 173,920 152,641

Legacy Business Drivers

MoU Total - in billion minutes 179 207 212 232 225 SMS Total - in billion units 54 77 135 183 219

Core Business Drivers

Data-enabled Users - in thousands 110,253 106,553 105,808 84,729 73,887 Data Payload - in TB 6,715,227 4,373,077 2,168,245 958,733 492,245

ARPU - in thousand Rupiah

Blended 46 41 43 45 43

Network Data - units

Total BTS-2G 50,297 50,310 50,324 50,344 48,394 Total BTS-3G/4G 161,938 138,771 110,381 78,689 54,895 Total BTS 212,235 189,081 160,705 129,033 103,289

Employee Data

Total Employees (incl. subs & associated co) 5,465 5,535 5,461 5,191 4,902

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ANNUAL REPORT 2019 January

MAXstream and Astro Presented An Original Production, "Nawangsih" Telkomsel's video streaming application, MAXstream through MAXstream Original, once again presented original content in the form of serial “Nawangsih”, in an effort to improve its user experience. Besides continuing to provide quality digital video content for its users, MAXstream also strives to hone the nation's creative talents by using our platform to showcase their work to the wider public.

February

WOW! Winners of The NextDev WON Award at the 2019 Mobile World Congress Habibi Garden, the winner of Telkomsel's Corporate Social Responsibility (CSR) program The NextDev 2016, successfully won an award at the prestigious annual Mobile World Congress (MWC) 2019. Specifically, Habibi Garden won the Best 5 award at the 2019 Global Mobile (GLOMO) Awards for its social impact contribution for Indonesia through agriculture.

Exciting & Interesting #BHAYPLASTIK Day at TSO Telkomsel launched the #BhayPlastik Day green campaign on February 19, which was held at the Telkomsel Smart Office Diorama. This event was not only aimed to reduce plastic waste, but also brought in a number of recycling communities to teach employees how to recycle materials into useful products.

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PT Telekomunikasi Selular Hig h lig ts of t e Year

March

Exciting Hackathon at Unpad, and Kick Off of The Nextdev 2019 The Nextdev Telkomsel, in collaboration with Padjajaran University, held the first Hackathon to catalyze innovations and stimulate the development of students as well as their careers. The event, themed "Respectacular Unpad Hackathon Weekend", was held on March 22-23, 2019 at Bale Santika, Padjadjaran University, Jatinangor. The winner with the best digital product was entitled to application development assistance funds of Rp100 million.

April

THE PATRIOT DIGITAL VILLAGE PROGRAM FROM TELKOMSEL MAKES VILLAGES COOL Telkomsel, through its CSR program called Patriot Digital Village, collaborated with Mobisaria (a rural digital platform) to initiate the formation of a digital literacy community. This program aims to create local heroes in the form of technology-literate Patriots, thus creating a new work opportunities in the digital age and helping community businesses as well as micro, small and medium enterprises (MSMEs). This program was launched by West Governor Ridwan Kamil, Telkomsel Human Capital Management Director Irfan A. Tachrir and Mobisaria CEO Dadang Geminar at Gedung Sate, on April 1, 2019.

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ANNUAL REPORT 2019 April

Spreading Happiness in the Month of Ramadan Director of Finance Heri Supriadi symbolically handed over dates to representatives of the 20 mosques designated as aid recipients at the Ramadan Takjil Date Handover event held at the Tarqiyah Taqwa TSO Mosque, Tuesday on April 30, 2019.

Rp500 Million for the Winners of the Dunia Games Pro League Grand Final Telkomsel’s gaming news portal and game voucher sales platform, Dunia Games, held the grand final of the Dunia Games Pro League (DGPL) on April 27, 2019 at the Dunia Games eSports Stadium, . The DGPL Tournament consisted of a Free Fire game competition attended by twelve of the best professional teams in Indonesia who competed for total prizes of more than Rp 500 million. The DGPL Tournament is a part of the Dunia Games League and the Dunia Games Campus League series, two of the largest eSports league tournament in Indonesia.

May

Telkomsel Formed TMI, A WHOLLY-OWNED Subsidiary to Support Investment Activities and New Strategic Partnerships with Startups Telkomsel reiterated its commitment to accelerate the development of digital ecosystems in Indonesia with strategic funding for early growth stage startups through its wholly-owned subsidiary, named Telkomsel Mitra Innovation (TMI), in collaboration with MDI Ventures Telkom and Innov8, a Singtel corporate venture capital. TMI is expected to enable access to various exciting new opportunities in the technology sector.

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PT Telekomunikasi Selular June

LinkAja Grand Launch, SOE Collaboration for the Country LinkAja was officially launched on June 30, 2019 under PT Fintek Karya Nusantara to LinkAja, a collaboration of State Owned Enterprises (SOEs) 'From and For Indonesia', is the only fintech supported by a variety of cross-sector businesses including banking, insurance, and oil. The inauguration was carried out by Indonesian Vice President Jusuf Kalla, SOE Minister Rini Soemarno, Transportation Minister Budi Karya Sumadi, Minister of Communication and Information Rudiantara and the Managing Directors of several SOEs.

Turning 24 in the Spirit of Transformation T-Perpus, Telkomsel's Digital Library As it came closer to the quarter century Telkomsel introduced T-Perpus to book lovers in mark, Telkomsel was infused with the spirit of Indonesia on June 29, 2019. T-Perpus is a digital transformation, leveraging momentum of its library created by Telkomsel in collaboration with anniversary celebration as a catalyst for change Gramedia. With the tagline "Knowledge at Your and transformation to drive the Acceleration of Fingertips", T-Perpus make it easier for users to the Country. access and read their favorite books.

SIAGA RAFI 2019, IN PREPARATION FOR EID AL-FITR Approaching eid al-fitr 2019, Telkomsel prepared GraPARI outlets and mobile services in 215 homecoming routes, including 342 tourist spots, 508 GraPARI Telkomsel Siaga, 493 Mobile GraPARI (comprises 324 cars and 169 motorbikes), 111 digital self service - MyGraPARI, 831 distributor partner service offices, and 3,779 Standby Outlets to ensure the quality of communication and Telkomsel's services during this period.

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ANNUAL REPORT 2019 July September

DMobXLab, A Cool Collaboration Between Telkomsel and ZTE The DMobXLab soft launch was carried out by HCM Director Irfan A. Tachrir and ZTE representatives in July. DMobXLab is Telkomsel's innovation lab for the acceleration of Industry 4.0 while simultaneously encouraging the advancement of the digital industry in Indonesia.

Telkomsel SUPPORTED the Launch of LinkAja Syariah in line with Islamic Lifestyle Trends Telkomsel, through its LinkAja business unit, signed a partnership with the National Sharia Finance Committee (KNKS) to launch LinkAja Syariah, a digital money platform in accordance with Islamic financial principles. The signing was carried out in conjunction with the opening of the Islamic Digital Day event, which was held at the Jakarta Financial Club on September 16.

August

SPREADING Happiness through Religious Sacrifices In the moment of Eid al-Adha 10 Dzullhijjah 1440H, the expanded Telkomsel family once again shared meat from sacrificial animals in one of its regular Corporate Social Responsibility (CSR) sharing programs, handing over a total of 751 sacrificial animals, consisting of 631 goats / sheep and 120 head of cattle, which was symbolically given by President Director Emma Sri Martini to the DKM of Al-Murthado Mosque on August 9. This aid was distributed to 505 locations around Telkomsel service offices, BTS locations, Hajj dormitories, and social partners / institutions throughout Indonesia.

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PT Telekomunikasi Selular Hig h lig ts of t e Year

Top Indonesian E-Game Players COMPETED at Golden Ticket 2019 Dunia Games held the Golden Ticket Grand Final Tournament e-games event on September 28 in Jakarta. A total of 12 e-sports teams competed on this Free Fire mobile game, which is one of the highest rated game applications in Indonesia. Held in partnership with Garena as the Free Fire application developer, this event is expected to encourage the emergence of professional, globally competitive e-gamers.

Telkomsel DELIVERED Abundant Excitement at the Oh My Gig Festival Telkomsel held the Oh My Gig (OMG) festival at Senayan Jakarta as a form of its commitment to encourage the digital lifestyle of its customers by delivering quality music, films and mobile games for them to experience. A highly popular girl band from South Korea appeared as the main star at the OMG festival, which aims to attract the attention of the younger generation as a segment targeted by Telkomsel.

Dunia Games Officially RELEASED ‘Lord of Estera’ Dunia Games, which is one of Telkomsel’s digital lifestyle services, released its newest e-game, Lord of Estera. As an RPG (role-playing game) online mobile game application, Lord of Estera has a variety of game modes, characters, and in-app purchases. Lord of Estera, which is Dunia Games’ second game, can be downloaded via the Google Play Store for Android-based devices and the App Store for iOS devices and does not require devices with high specifications.

October

Telkomsel LAUNCHED by.U, the First End-to-end Digital Prepaid Cellular Service in Indonesia Telkomsel officially launched by.U, the first digital prepaid cellular service in Indonesia that provides an end- to-end digital experience for all needs, from choosing a number to getting a SIM card, topping-up balance and quota, and making payment. by.U was developed specifically for the Gen Z segment in Indonesia which is continuously online, and aimed to accommodate them through integrated services based on fully customizable digital applications.

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ANNUAL REPORT 2019 November

Telkomsel LAUNCHED Various Content on HBO GO THROUGH MAXSTREAM Telkomsel in collaboration with Warner Media Entertainment has now made HBO Go available on the one-stop video portal MAXstream, which was officially launched on November 15 at the Atrium. The collaboration made Telkomsel the first cellular operator to deliver HBO GO services in Indonesia, enabling its customers to enjoy the entire collection of HBO blockbuster shows and films anytime, anywhere, with a variety of special Data package options.

Approaching Christmas and New Year, Telkomsel Successfully TRIALLED Telkomsel Guarantees Superior Network Network in Quality Telkomsel successfully tested its 5G network in In an effort to maintain superior Voice and Data Batam, Islands with the first video call using quality during the 2019 Christmas and 2020 New a 5G connection between Telkomsel officials and Year period, Telkomsel Network Directorate carried the President Director of Ericsson Indonesia, Jerry out various activities including holding a series of Soper. A 5G speed test with Oppo Reno 5G was Drive Test and Network Inspection (DTNI). This year, also successfully held. In the future, 5G technology DTNI focused on Super Crowds and the Toll Road is expected to provide many benefits for national Network, which had just been formalized by the industrial development. government. The aim is to ensure that Telkomsel customers can enjoy excellent experience along toll roads, rest areas and exit tolls with regard to both Voice and Data access services.

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PT Telekomunikasi Selular Hig h lig ts of t e Year

December

Supporting the Digital Lifestyle for All, MAXstream Presented the ‘Isyarat’ Series MAXstream presented an interesting and inspiring series called “Isyarat”, a family drama based on the true story of the struggle of Angkie Yudistia, founder and CEO of Thisable Enterprise, a company specialising in supporting Indonesians with disabilities. Angkie was recently selected to be Special Staff to President Joko Widodo during the 2019-2024 period. This series focuses on how Angkie, who is deaf, is nonetheless able to Five of Indonesia's Best Startups overcome her disabilities to become an inspiration Showcased BRILLIANT Creations at The 2019 for the people of Indonesia. NextDevSummit The NextDev 2019, as a program that searches for and helps develop Indonesia's best technology startups in the social impact field, presented five finalists as the best startups, namely Benihbaik. com, Binar Academy, Ravenry, Mother and Crowde. Revenry, Mother and Crowde later emerged as the winners, winning development funds amounting to IDR 100 million each, and the opportunity to go for training at the Huawei Global Training Center in Hangzhou, China.

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ANNUAL REPORT 2019 WSIS Prizes 2019 Champion of WSIS Prizes 2019 - ICT Applications (e-Agriculture)

Telkomsel WSIS Prizes 2019 won a Champion of WSIS Prizes 2019 - ICT Applications (e-Business) total of 56 national and These prestigious achievements reflect international Telkomsel’s commitment Frost and Sullivan 2019 to continuous excellence Digital Service Provider of the Year 2019 awards in 2019 in business and customer service, maintaining a Asia's Best Employer Brand good corporate image, and in a variety of Awards 2019 delivering on its corporate Asia's Best Employer Brand categories social responsibility. Awards 2019

Telecom Asia Awards 2019 Telecom Asia Awards 2019 Telecom Asia Awards 2019 Most Innovative Approach to Most Innovative Customer Most Innovative IoT Project Mobile Security Service Technology (My (INTANK) - Finalist Telkomsel) - Finalist

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PT Telekomunikasi Selular Hig h lig ts of t e Year

Frost and Sullivan 2019 Frost and Sullivan 2019 Indonesia Mobile Data Service Indonesia Telecom Service Provider of the Year Provider of the Year

World Branding Award 2019 Indonesia Best Brand Awards 2019 Brand of the Year 2019 Platinum Winner - Sim Card simPATI Applications (e-Agriculture)

Red Hat APAC Innovation Awards 2019 Digital Transformation

Influential Brand Awards 2019 Top Brand

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ANNUAL REPORT 2019 Corporate Image Frost and Sullivan 2019 Indonesia Mobile Data Service Provider of the Indonesia WOW Brand Gold Champion - Year 2019 Operator Seluler Frost and Sullivan 2019 Indonesia Telecom Service PR Indonesia Awards 2019 Platinum Winner - Provider of the Year Perusahaan Swasta Non Tbk. Influential Brand Awards Top Brand 2019 Telecommunication Selular Awards 2019 Excellence in Performance - Irfan A. Tachrir, Kementerian KOMINFO Telecommunications Director Human Capital Awards 2019 Provider with the Broadest Management Network, Highest Quality of Services, Selular Awards 2019 Excellence in Media and Highest National - Denny Abidin, Telecommunications VP Corporate Taxpayer in 2019 Communications Corporate Image Award Corporate Image Award - 2019 Mobile Operator Corporate Social Responsibility

Indonesia Most Innovative Most Innovative Business - PR Indonesia Awards 2019 Gold Winner - Program Business Award 2019 Telecommunication CSR Community Based Development Telkomsel BrandZ Most Valuable Top 3 Most Valuable “The NextDev” Indonesian Brands 2019 Indonesian Brands 2019 WSIS Prizes 2019 Champion of WSIS Prizes RRI BUMN Award 2019 Gold Winner in Market 2019 - ICT Applications Dominance (e-Business) RRI BUMN Award 2019 Gold Winner in Brand WSIS Prizes 2019 Champion of WSIS Prizes Strength 2019 - ICT Applications RRI BUMN Award 2019 Gold Winner in Social (e-Agriculture) Economy Contribution Selular Awards 2019 Best Social Contribution BUMN Awards 2019 Top 10 Popular Program (Baktiku SOE Subsidiaries - Negeriku) Telecommunication Indonesia's Corporate Top 5 Social Marketing PR Indonesia Awards 2019 The Most Popular Leader Social Initiative Award Program - Patriot Desa in Social Media 2019 Digital World Branding Award Brand of the Year 2019 2019

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PT Telekomunikasi Selular Hig h lig ts of t e Year

Digital Enterprise

PR Indonesia Awards 2019 Gold Winner - Telecom Asia Awards 2019 Most Innovative Approach MyTelkomsel Application to Mobile Security

Digital Media HCM

Inhouse Magazine Award The Best of E-Magazine Top 100 Asia’s Best Asia’s Best Employer Brand 2019 for “POPCORN Telkomsel” Employer Brands 2019 in Telecommunication - Silver Winner in National Industry Private Company category Indonesia Best Employer Best Employer Brand Brand Awards 2019 Award

Digital PR

TOP Digital PR Award 2019 TOP Digital PR Award IoT in SIM Card Provider Telecom Asia Awards 2019 Most Innovative IoT Project category (INTANK) - Finalist

Digital Services IT Frost and Sullivan 2019 Digital Service Provider of Red Hat APAC Innovation Digital Transformation the Year 2019 Awards 2019 Selular Awards 2019 Best Digital Service Top IT Telco Award 2019 TOP Digital Implementation 2019 on Telecommunication Sector Emoney #Level Star 5 Infobank Awards 2019 Best Overall Emoney Non Top IT Telco Award 2019 TOP Wireless Internet Bank for TCASH Provider

st Infobank Awards 2019 1 Rank Emoney Non Bank Top IT Telco Award 2019 TOP Paket Data 2019 for TCASH Top IT Telco Award 2019 TOP Leader on Digital Implementation - Emma Sri Martini (CEO)

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ANNUAL REPORT 2019 Marketing Public Relation

PR Indonesia Awards 2019 Silver Winner - Program Telkom University Award 1st Best Corporate Marketing PR Telkomsel 2019 on Transformation in “Join The Movement Communications #BhayPlastik” PR Indonesia Awards 2019 Gold Winner - Video Infobank-MRI Better Better Brand Kategori SIM Profile Telkomsel Brands Awards 2019 Card Brand simPATI PR Indonesia Awards 2019 Gold Winner - Program Infobank-MRI Better Better Brand Kategori Sim Corporate PR Telkomsel Brands Awards 2019 Card Brand Kartu AS “Winning Today , Advancing The Nation” Marketing Award 2019 The Best in Market Driving Company - MAXStream PR Indonesia Awards 2019 Most Popular in Media subcategory Private BUMN Track Awards 2019 The Best Branding Anak Company non Tbk. Perusahaan BUMN BUMN Track Awards 2019 The Best Corporate Branding Anak Perusahaan Product BUMN Telecom Asia Awards 2019 Most Innovative Customer BUMN Track Awards 2019 The Best Digital Marketing Service Technology (My Anak Perusahaan BUMN Telkomsel) - Finalist Indonesia Best Brand Platinum Winner for Digital Popular Brand Digital Popular Brand Awards 2019 simPATI in SIMCARD GSM Award 2019 Award - Sim Card Pre-paid product category Wonderful Indonesia The Best Creative Product Co-Branding Champion for Inbound Traveler 2019 Network Indonesia's PR of the Year The Best Marketing PR Selular Awards 2019 Best 4G Service 2019 Program 2019 - Launching Broadband World Forum Best Wireless Broadband Program by.U 2019 Solution

INFORMATION TECHNOLOGY Telkomsel received ISO/IEC 27001:2013 Order & Fulfillment Management, Sales & Channel Management, certification from BSI for operating Customer Management (Prepaid, Business Intelligence Management, an Information Security Management Postpaid, Customer Data Support), Financial Management, Messaging System that provides Billing, Rating Supply Chain & Resource and Notification Management, and Charging, Service Management, Management, Telco Network Infrastructure and

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PT Telekomunikasi Selular Hig h lig ts of t e Year

Customer Service We are committed to providing the delivering high quality services and highest customer satisfaction in guaranteed customer satisfaction. accordance with the International ISO 9001:2015 standard. This is the In 2019, we maintained ISO international standard for quality certification for 80 GraPARI, management, indicating that we reflecting the quality of our of Telkomsel’s GraPARI were awarded ISO have achieved consistency in maintenance. 9001:2015 certification

Telkomsel’s GraPARI: • Icon • Denpasar • WTC • Banda • • Gresik • • Batam Center • Sibolga • Jember • Ambon • Batam Penuin • • Kediri • • Belitung • Tanjung Pinang • Kudus • Bontang • • • Kupang • • Binjai • Center Point • Kuta • Jayapura • • Barat • Madiun • Kendari • • Cianjur • Malang • • Kisaran • Cibubur • Mataram • Manado • Kualanamu • Cilegon • Pondok Jati • Manado Town Square • • Dago Bandung • Probolinggo • Manokwari • Lhokseumawe • Jakarta • Purwokerto • Palangkaraya • Lubuk Linggau Selatan • Renon • Palu • SKA Pekanbaru • Wisma Alia • Ciputra Semarang • Pare-Pare • Meulaboh • Karawang • Semarang Pahlawan • Pontianak • Ring Road City Walks • Serang • Solo • Samarinda Medan • Sukabumi • Bukit Darmo Surabaya • Balikpapan • Muara Bungo • Terminal 3 Bandara Soetta • Surabaya Pemuda • Tarakan • Padang • Tasikmalaya • Tegal • Timika • Padang Sidempuan • Banyuwangi • TTC HR Muhammad Surabaya

Surrounding Billing Environments. In addition, Telkomsel also obtained Supply Chain and Resource Management This is accordance with the ISMS/ ISO/IEC 20000-1:2011 certification, Service; and Service Management Service M01 Statement of Applicability v.10.1 which covers the IT Directorate Service from the IT Directorate office and data dated July 2019 and valid through Management System consisting of center in Jakarta, Tangerang, Surabaya, September 22, 2022. Billing, Rating and Charging Service; , Pekanbaru, and Solo.

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ANNUAL REPORT 2019 02

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PT Telekomunikasi Selular REMARKS FROM

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ANNUAL REPORT 2019 REMARKS FROM THE PRESIDENT COMMISSIONER

the Indonesian telecommunications industry managed to grow in 2019, after the government SIM card registration WAS EXERCISED in the previous year. Ririek Adriansyah

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PT Telekomunikasi Selular Rema r ks f om the M anagementR emarks rom th e ana

v

Dear Shareholders, Legacy services to Data, coupled Supervision and with ongoing competitive Assessment of the

Global economic conditions environment, continued to put Board of Directors’ g emen t continued to exhibit volatility pressure on pricing, Telkomsel was Performance in 2019, with global political able to achieve positive performance Throughout 2019 uncertainty and weak global trade in 2019. Revenue, EBITDA, Net and economic growth due to Income and EBITDA Margin In accordance with its duties international trade tensions and have improved through various and responsibilities, the Board of other geopolitical issues. Economic strategic initiatives to encourage Commissioners supervised the weakness was widespread, affecting Data monetization and improve management of the Company both advanced economies, profitability, while maintaining cost throughout the year, with reference emerging market and developing leadership initiatives to effectively to Telkomsel’s long-term business economies. Towards the end of the manage operational expenses. strategy. year, accommodative monetary policy and fiscal easing in some Telkomsel also continued its countries helped to prop up growth, transformation initiatives to drive but not enough to boost global Digital Business development as the EBITDA MARGIN expansion. engine of growth and its journey to become a Digital Telco Company Despite these conditions, Indonesia and a leading Mobile Digital provider. managed to achieve a stable GDP As a result, Digital Business recorded growth of 5.02%, compared with strong performance & substantially 5.17% in the previous year. The increasing its contribution to total economy moreover continued revenue driven by Data Revenue on-air BTS to exhibit sound macroeconomic as well as Digital fundamentals with inflation well Services in line under control, a strengthening with initiatives to rupiah, and a still tolerable state strengthen digital budget deficit. ecosystem and long term competitive system In the midst of these dynamics, the through various programs, Indonesian telecommunications including delivering innovative industry managed to grow in digital products and services. 2019, after the government SIM card registration was exercised in the previous year. Although the transition from higher margin

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ANNUAL REPORT 2019 in 2019 this transformation was cascaded into several programs, with the overall goal of building up the digital business while defending legacy and expanding Data connectivity.

The Board of Commissioners or Rp10.9 trillion to reach Rp58.2 These innovations were supported is of the opinion that the Board trillion, representing the highest by network improvements for best of Directors has achieved good growth in the industry in terms of experience, with the number of performance in managing the absolute numbers. The contribution on-air BTS increasing by 12.2% to transition of the Legacy business of Digital Business to the total 212,235 BTS, of which the majority to Digital and continuing the Revenue also increased substantially at around 76% are 3G/4G BTS. transformation of the Company. to 63.9% from 53.0% in 2018 in line Telkomel also successfully trialed 5G In addition, the management has with the transition from Legacy to technology as part of its innovation successfully maintained Telkomsel’s Digital Business. At the same time, during the year. market leadership, and continued Telkomsel was able to increase the transformation of the Company EBITDA Margin from the previous In parallel, the Board of Directors to deliver growth in 2019, with year. The Digital Business segment also maintained continuous human subscriber numbers rising by 5.0% supported by revenue from Data and resources development as well YoY to 171.1 million. Digital Services that grew by 22.3% as good corporate governance YoY and 29.0% YoY, respectively standards, which are important Telkomsel was able to close 2019 in line with Telkomsel initiatives to to ensuring the continuity and with positive Revenue, EBITDA accelerate the growth of Digital sustainability of the business. and Net Income at Rp91.1 trillion Services with key products and (+2.1% YoY), Rp49.2 trillion (+3.7% services included Digital Lifestyle, Opinion on Business YoY) and Rp25.8 trillion (+1.0% YoY) Mobile , Digital Prospects - Shaping respectively, while maintaining cost Advertising, Digital Mobile Banking the Future of Digital leadership initiatives to effectively and Internet of Things (IoT). Indonesia manage operational expenses. As a result, EBITDA Margin improved to The Board of Directors continued Since 2012, Telkomsel’s entire 54.0% from 53.2%. to focus on developing Telkomsel’s business and organization has digital products and services undergone a journey of continuous This positive performance was through a number of exciting new transformation. Based on its supported by transformation innovations that will help shape Corporate Strategic Plan, in 2019 initiatives in Digital Business as the customers’ experience as well as this transformation was cascaded engine of growth, which recorded Telkomsel’s business going forward. into several programs, with the significant growth of 23.1% YoY

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PT Telekomunikasi Selular Rema r ks f om the M anagement

overall goal of building up the Remuneration Committee, and Acknowledgement Digital Business while defending the Capital Expenditure, Financing Legacy and expanding Data and Management Process (CFMP) Our appreciation and gratitude connectivity. The programs were Committee. Together, these goes out to the Board of Directors successfully completed in 2019 committees helped to oversee and all Telkomsel employees, in line with targets, delivering important aspects related to who successfully advanced the positive contribution to Telkomsel’s corporate governance, to ensure Company to achieve improved performance during the year. that the business is run sustainably. performance in this challenging year. The innovations and improvements In general, the Board of As a result of these efforts, I am realized in 2019 have created real Commissioners is of the opinion that pleased to report that Telkomsel’s value and improved customer Telkomsel has made solid progress financial reporting once again satisfaction alongside our ongoing in terms of shifting from a product received an unqualified audit opinion journey of transformation. and network-centric approach in 2019. to a customer-centric approach. We also wish to thank all of This new approach, supported by Changes to the Board of Telkomsel’s valued customers, continued innovation and expansion Commissioners respected partners and all of its network and ecosystem plus stakeholders for their support and important collaborations with a The composition of the Board loyalty in our journey to shape the variety of partners, will enable of Commissioners at Telkomsel future of the business, not only for Telkomsel to maintain its leading changed during 2019. In May Telkomsel but also for Indonesia. position in the new digital landscape, 2019, Alex J. Sinaga was honorably and effectively participate in shaping discharged from the Board of Sincerely yours, the future of digital Indonesia. Commissioners and I was appointed in his place. Subsequently in Corporate Governance November 2019, Nanang Pamuji Mugasejati was appointed to replace Good corporate governance is a key Mohamad Irfan. Ririek Adriansyah priority for the Company. The Board President Commissioner of Commissioners is responsible The Board of Commissioners for supervising the implementation expresses its appreciation to Alex J. of good corporate governance, as Sinaga and Mohamad Irfan for their well as advising and supervising the services to Telkomsel, and thanks Board of Directors through regular the shareholders for their trust. meetings, reports and discussions.

To conduct these tasks, the Board of Commissioners was assisted by various committees. These committees, which report to the Board of Commissioners, consist of the Audit Committee, the

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1. Ririek Adriansyah President Commissioner 2. Yose Rizal Commissioner 3. Yuen Kuan Moon Commissioner 4. Harry M. Zen Commissioner 5. Nanang Pamuji Mugasejati Commissioner 6. Paul Dominic O’Sullivan Commissioner

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ANNUAL REPORT 2019 Harry M. Zen Commissioner Ririek Adriansyah Mr. Harry M. Zen has been a member President Commissioner of the Board of Commissioners of Mr. Ririek Adrianysah has been President Telkomsel since August 2016. He has Commissioner of Telkomsel since May also served as the Chief Financial 2019. He is currently also the President Officer of PT Director of PT Telkom Indonesia (Persero) Tbk since April 2016. He has (Persero) Tbk. concurrently served as President Commissioner of PT Graha Sarana He has held various strategic positions Duta since 2016. at PT Telekomunikasi Indonesia (Telkom) and Telkom Group since 1990 He previously held various including as President Director of strategic positions including as Telkomsel (2015-2019), Director of President Director of PT Credit Wholesale & International Service Suisse Securities Indonesia at Telkom (2013-2014), Director of (2008-2015), Director of Compliance and Risk Management Barclays Capital (2007-2008), at Telkom (2012-2013) and has Co-Head Investment Banking also served as President Director of PT Bahana Securities at PT Telekomunikasi Indonesia (2001-2007) and Assistant International (), a subsidiary Vice President of Citibank - of Telkom (2011-2012), Director of Corporate Banking. He was Marketing & Sales at Telin (2010- named Best CFO in Compliance 2011), Director of International Carrier & Governance at the CFO BUMN & Services at Telin (2008-2010) and Award 2019, Asia’s Best CFO for Deputy Executive General Manager of two consecutive years at the 9th the Infratel Division at Telkom (2004- and 8th Asian Excellence Award in 2008). 2019 and 2018, and Finance Asia’s Best CFO 2018. He earned a degree in Electronic Engineering from the Bandung He holds a Bachelor degree Institute of Technology (ITB) in 1989. in Metallurgical Engineering from the and a Master of Business Administration in Corporate Finance and Financial Institutions & Market from the State University of New York at Buffalo, USA.

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Paul D. O’Sullivan Commissioner Yose Rizal

Mr. Paul O’Sullivan has been a Commissioner of Commissioner Telkomsel since January 2010. He has also served as Chairman of since October 2014. Mr. Yose Rizal has served as a Commissioner of Telkomsel since He is currently a Board Director of the following; May 2017. He is currently the NDIA, the National Disability Insurance Agency, Chairman and Founder of MediaWave providing support for Australians with disability, Group, a Big Data and Digital their families and carers; The Australia and New company. Founder of PoliticaWave, Zealand Banking Group Limited, (ANZ), an a political social media monitoring Australian multinational banking and financial and analytics, and an extraordinary services company; and Coca-Cola Amatil lecturer and business mentor for the Limited, one of the largest bottlers of non- Master of Business Administration alcoholic ready-to-drink beverages in the at the School of Business and Asia-Pacific Region. He is chairman of the Management – the Bandung Institute Western Sydney Airport Company, a significant of Technology (SBM ITB). He has national infrastructure project to build a new also been the Head of Research airport which the Australian Government will and Measurement, Indonesia Digital own and operate, and also a Board member Association since 2014. of the St George and Sutherland Medical Research Foundation and St Vincent’s Previously, he was the Business Health Australia, a provider of healthcare Director of Snoop Mobile Media services in the Eastern States of Australia (2008-2010), a Director of Azka through public and private hospitals and aged Megah Dirgantara (2003-2008), and care facilities. Director of Bandung Information Technology (2000-2004). He was Mr. Paul O’Sullivan was previously CEO of Singtel also Chairman of the Business Group Consumer from 2012-2014, where he was Data Department at the responsible for the wholly owned operations in Trade Chamber (2009-2013), the and Australia, as well as Singtel’s Chairman of the Creative Industry investments in , , Africa, the Compartment at BPP Himpunan Philippines and Indonesia. He was CEO Pengusaha Muda Indonesia (2009- of Optus from September 2004 to March 2010) and the General Secretary of 2012, during which time Optus experienced BPC HIPMI Bandung (2006 -2009). strong growth including 18 quarters in a row of He earned a degree in Urban & EBITDA growth and 7 consecutive half-years of Regional Planning from the Bandung mobile revenue share gain. Institute of Technology in 2003.

He holds a Bachelor (MOD) degree in Economics from Trinity College, University of Dublin and is a graduate of the Advanced Management Program of Harvard University, USA.

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ANNUAL REPORT 2019 Yuen Kuan Moon Commissioner Nanang Pamuji M. Mr. Yuen Kuan Moon has been on the Board Commissioner of Commissioners since September 2009. He is currently Singtel’s Chief Executive Officer, Mr. Nanang Pamuji Mugasejati Consumer Singapore, appointed in June 2012. has served as a Commissioner of He leads the Singapore consumer business Telkomsel since November 2019. In to deliver an integrated suite of mobile, October 2019, he was appointed as broadband and TV services. Concurrently, he a Special Assistant to the Indonesian is responsible for driving the Singtel’s digital State-Owned Enterprises Minister for transformation as Group Chief Digital Officer, talent development and technology a role that was created to unlock digital innovation, with the task of providing growth opportunities in an era of disruption. advice to the Minister on upgrading SOE competitiveness for the global market. In 2003, he was posted to Telkomsel as General Manager for Product He is presently the Director of Development and was appointed the Center for Digital Society Director of Commerce from 2005 to (CFDS) at the Faculty of Social 2007. He has established a strong track and Political Sciences, Gadjah record in the telecommunications Mada University, Yogyakarta, industry since starting his career at which conducts research Singtel in 1993. on digital transformation in Indonesia (2015-present). He In October 2016, he was appointed as also teaches at at Department of a Member of the SkillsFuture Singapore International Relations, Faculty Board and in January 2018, he joined the of Social and Political Science, Board of Advisors of the Institute of Service Gadjah Mada University, Yogyakarta Excellence at Singapore Management (2008-present). University. He was also appointed as a member of the Digital Readiness Council He previously served as CEO at at the Ministry of Communications and Forbil Institute, a leading think Information in November 2018. In May tank organization in Yogyakarta 2019, he joined the Governing Council of that promotes policies for global Singapore Institute of Management. competitiveness (2018), as well as a Commissioner at Krakatau Steel Mr. Yuen is an Engineering graduate (2017-2019). with a First Class Honors degree from the University of Western Australia and the holder He earned a PhD in International of a Master of Science degree in Management Relations in 2001 from Universitas from Stanford University, US. Gadjah Mada followed by a stint at the Graduate School of International Development (GSID) at Nagoya University, Nagoya. His area of expertise is global competitiveness in the era of digital disruption.

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Mohamad Irfan Commissioner (served until June 2019) Alex J. Sinaga President Commissioner (served until May 2019) Mr. Mohamad Irfan served as a Commissioner of Mr. Alex J. Sinaga served as Telkomsel from July President Commissioner 2018 until June of Telkomsel from 2019. An executive January 2015 to with more than May 2019. Prior 14 years of to this, he held profit-driven various strategic marketing and positions within sales experience Telkom Group in various including President sectors including Director of Telkom, telecommunications, President Director of he was experienced in Telkomsel, President strategy analysis as well as sales and Director of TelkomMetra profit development. (a subsidiary of Telkom as a strategic investment company focusing on He was also a Commissioner at PT Mandala Putera information, Media, Edutainment and Services), Prima, PT Nurbaitullah Tour & Travel, PT Indonesia President Commissioner of PT Sigma Cipta Comnets Plus (ICON+), PT Mirga Metracon and Caraka (Telkomsigma) and Executive General PT Faidhi Systema Solusindo (Fasyndo), where Manager of various divisions in Telkom he was actively involved in creating, developing Indonesia. and penetrating new market segments, including winning major tenders. Aside from Telkom Group, Alex J. Sinaga has also held several prestigious positions, including as Over the course of his career he also held positions the Chairman of Indonesian Telecommunication at PT Mediavision Innovative Technology as the Association (ATSI) from 2012 to 2014 and Sales Director and at PT Philips Indonesia as Key Chairman of Board of Trustees of ATSI from Account Manager - Government Segment, Project 2014 to 2015. He holds a degree in Electrical Coordinator - Government Segment for , Engineering from the Bandung Institute of , NTB & NTT. At GE Consumer & Industrial - PT Technology (ITB) and a Master’s degree in GE Lighting Indonesia, he was a Sales Engineer for Telematics from the University of Surrey, DKI Jakarta and Sales Engineer for South . Guildford, United Kingdom. Previous to that he was a Business Development Officer at PT Phoenix International Indonesia. He was awarded the Satyalancana Pembangunan and Satyalancana Wira Karya He graduated from Hasanuddin University, Makassar Medals of Honor in 2014 by the President of the in 2001 majoring in Marketing Management, and Republic of Indonesia. subsequently earned a Magister of Management degree from the University of Indonesia in 2004, also majoring in Marketing Management.

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ANNUAL REPORT 2019 Dear Shareholders, The other change in the industry Financial & Operational has been the reinforcement of Results As business and technological the prepaid SIM card registration change continued to accelerate, exercise. This policy has had a natural In the midst of the challenging the Indonesian telecommunications cleansing effect, resulting in a better environment, Telkomsel maintained industry faced multiple challenges quality customer base with higher growth in positive territory, supported during 2019. Telkomsel continued its numbers of real active subscribers by a variety of strategic initiatives transformation to become a leading and improvement in ARPU as well as to encourage Data monetization Digital Telco Company and build a more efficient SIM card production and shifts in customer behavior, Digital Indonesia through a variety of costs. It will also have positive including take up strategies to strategic initiatives, which enabled it long-term impact and support the maintain and improve profitability. to overcome these challenges and emergence of healthier competition The current market dynamics have expand its capabilities and ecosystem in the industry. confirmed Telkomsel’s decision to shape the future. as the market leader to point the In response, Telkomsel implemented industry in a healthier direction, Similar to recent years, the ongoing a variety of initiatives to drive healthy one which supports better decline in the Legacy business (Voice growth and profitability while opportunities for growth in Data & SMS) continued to put pressure continuing its transformation journey & Digital Services as the future of on the industry throughout 2019. to become a Digital Telco Company telecommunications industry. Telkomsel actively managed this and a leading Mobile Digital provider, challenge through various initiatives which I will discuss further below. As a result, we closed 2019 with solid and simultaneously continued to drive growth and positive performance Digital Business development as the with Revenue, EBITDA and Net engine of growth. Income amounting to Rp91.1 trillion (+2.1% YoY), Rp49.2 trillion (+3.7% At the same time, Telkomsel had YoY) and Rp25.8 trillion (+1.0% YoY) to contend with price competition respectively, mainly supported by in Data, which continued to be transformation initiatives in Digital challenging as other operators Business as the engine of growth. In competed for market share by parallel, Cost Leadership initiatives offering unlimited Data packages, leading to pressure on margins. Digital Business Revenue Contribution

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PT Telekomunikasi Selular R emarks f rom th e M ana g emen t we have established various strategies to capture opportunities in the digital business.

Setyanto Hantoro

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ANNUAL REPORT 20182019 effectively managed operational Scaling Up Our Digital effectively helped Telkomsel to scale expenses, resulting in EBITDA Margin Transformation up our digital transformation during improvement from 53.2% to 54.0%. the year. Digital Business recorded strong The massive transformation of our performance with 23.1% YoY growth entire business, people, organization Key digital investments and initiatives to Rp58,237 billion, substantially and corporate culture continued during the year included the launch increasing its contribution to total in 2019 with good results. In of our new OMG! product campaign revenue to 63.9% from 53.0% in the collaboration with partners and digital featuring unlimited Data usage for previous year. Growth was driven by content providers, we expanded our certain popular applications and social Data Revenue, which rose by 22.3% Digital Business through innovative media sites, the launch of by.U as YoY to Rp50,550 billion, as well as by products and services in alignment the first fully digital prepaid cellular Digital Services, which also recorded with targeted customer segments, telco service, and the release of Dunia strong growth of 29.0% YoY to in particular emphasizing winning Game’s second e-game called ‘Lord Rp7,687 billion. the youth segment through the right of Estera’. Furthermore, 2019 marked digital products and experience. We the successful spin-off of Telkomsel’s Telkomsel recorded 171.1 million also improved network quality to Mobile Financial Service product, subscribers in 2019, an increase of deliver optimal customer experience TCASH, which was rebranded as 5.0% YoY on the back of effective towards strengthening customer LinkAja and is now one of the major marketing campaigns coupled with engagement and loyalty. Internally, players in the flourishing Indonesian customers retention initiatives that we continued to reshape our culture digital payment ecosystem landscape. were supported by prepaid SIM and organization to become more Telkomsel also trialed 5G technology registration, led to lower churn and agile and customer-centric, towards in Batam in 2019, supporting the shifts in customer behavior. In line attaining the company’s objectives. government’s initiative for industry with our philosophy to always lead 4.0 as part of our preparations to in network supply including outside In order to maintain our leading participate in the next wave phase of Java, we deployed 23,162 new BTS position & shape the future of digital telco innovation. in 2019 all of which were 4G-based, Indonesia, we established several in order to maintain and strengthen programs under three major mobile Having successfully enhanced our network leadership and grow transformation categories with the customer satisfaction through a our Digital Business. Fueled mainly overall goal of building up the Digital combination of internal innovation and by Data User growth (+3.5% YoY with Business, while defending Legacy collaborative partnerships, Telkomsel 64.4% penetration) to 110.3 million, and expanding Data connectivity. has measurably advanced towards our Data traffic surged by 53.6% YoY These three major transformation becoming a Digital Telco Company and to 6,715,227 TB, while the number categories focused on creating a leader in the Mobile Digital Business of 3G/4G capable devices reached Future Fit Organization by adapting that is able to positively shape the 119.3 million (+11.5% YoY and 69.7% the organization structure to future of digital Indonesia. penetration) and Data consumption support end-to-end B2B (Business usage showed promising growth of to Business) and B2C (Business to Corporate Social +54.7% YoY to 5.2 GB per Data User. Consumer) segmentation, Energizing Responsibility At the end of 2019, Telkomsel’s on-air the Workforce to create a high BTS totaled 212,235 units (+12.2% performance workforce, and ensuring Telkomsel’s vision is to be a world YoY), 76.3% of which were 3G/4G BTS. efficient, Lean Operations through class, trusted provider of mobile Digital digitalization. This combination Lifestyle services and solutions, with a mission to deliver Mobile Digital

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Services and solutions that exceed training and assistance to produce Subsequently in January 2020, Emma customers’ expectations, create value young entrepreneurs with a digital Sri Martini and Iskriono Windiarjanto for our stakeholders and support leadership mindset. were honorably discharged. I was the economic development of appointed as President Director and the nation. Telkomsel’s numerous In addition, Telkomsel committed to Venusiana Papasi was appointed as CSR programs and initiatives have accelerating Indonesia’s development Director of Network. therefore been designed to support through the Telkomsel Digital the achievement of Company’s vision Library application, called T-PERPUS We are grateful to Ririek Adriansyah, and mission. program. This program gives the Emma Sri Martini, Bob Apriawan, public access to reading materials, Sukardi Silalahi, Montgomery In 2019, Telkomsel once again thus encouraging the public and Hong, Alistair Johnston and held the NextDev program to find, school communities in particular to Iskriono Windiarjanto for all their incubate, and support promising read and improve their educational contributions. Indonesian technology startups competence and quality. with social impact. The NextDev Acknowledgement program consisted of the NextDev These are just a few of Telkomsel’s Talent Scouting activity, the NextDev many CSR programs in 2019, which On behalf of the Board of Directors, Academy 2019, the NextDev Summit are discussed in further detail in the I would like to convey our sincere 2019 and Telkomsel on the Mission. CSR chapter of this report. gratitude and appreciation to all of These activities aimed to help our valued customers and subscribers selected startups develop sustainable Changes to the Board of for choosing Telkomsel. I would also solutions for positive social impacts Directors like to thank our partners for their that will benefit the people of collaboration and support. Indonesia while further developing The composition of the Board of the Indonesian digital ecosystem. Directors at Telkomsel changed Our achievements this year would during 2019-2020. In May 2019, not have been possible without the In parallel, Telkomsel through Ririek Adriansyah, Bob Apriawan, efforts of all our employees, who the Baktiku Negeriku program Sukardi Silalahi and Montgomery have worked tirelessly to transform has created Digital Centers in 18 Hong were honorably discharged Telkomsel. The advice and guidance regions across Indonesia, to support as, respectively, President Director, of the Board of Commissioners and technology transfer and access to Director of Network, Director of Sales the regulator were also instrumental information for local communities, and Director of IT. Replacing them in advancing the business. Finally, I Telkomsel also launched the Patriot were Emma Sri Martini as President am grateful to our shareholders for Desa Digital (PDD) program which Director, Iskriono Windiarjanto as their constant support as we strive to aims to transform village business Director of Network, Ririn Widaryani shape a better future for the benefit institutions into digitally oriented as Director of Sales and Bharat Alva of all stakeholders. enterprises. For the millennial as Director of IT. community, Telkomsel held Digital Sincerely yours, Creative Millennials (DCM), a business In June 2019, Alistair Johnston was development program which gives honorably discharged as Director of Marketing and replaced by Rachel Goh. Setyanto Hantoro President Director

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PT Telekomunikasi Selular 1. Edward Ying Siew Heng Director of Planning and Transformation 2. Goh Hui Min (Rachel Goh) Director of Marketing 3. FM Venusiana R Director of Network 4. Setyanto Hantoro President Director 6 5. Irfan A Tachrir Director of Human Capital Management 6. Heri Supriadi Director of Finance 7. Ririn Widaryani Director of Sales 8. Bharat Alva Director of IT

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ANNUAL REPORT 2019 Setyanto Hantoro President Director Ririn Widaryani Mr. Setyanto Hantoro has served as President Director of Sales Director of Telkomsel since January 2020. He is responsible for the overall management of the Ms. Ririn Widaryani has served Company. He is concurrently Commissioner at as Director of Sales since her PT Dayamitra Telekomunikasi (Mitratel) (since appointment in May 2019. She has 2019-present) and Jalin Pembayaran Nusantara vast experience in sales and consumer (JALIN) (2017-present). He was previously marketing in the telecommunication President Director of PT Multimedia Nusantara industry. (METRA) in 2019. She was previously Executive Vice Prior to his tenure at METRA, he held a President Area Jabotabek-Jabar number of senior strategic leadership (2017-2019), Executive Vice President positions at Telkom since 2012 including EVP Area Java Bali (2016-2017), Senior Strategic Investment (2016-2019), VP Vice President Consumer Marketing Strategic Investment Execution (2016), (2016), VP Prepaid and Broadband VP Strategic Business Development Marketing (2013-2016), VP Strategic (2012-2016), VP Business Portfolio and Marketing Group (2012) when Financial Planning (2010-2012) and AVP Telkomsel won ‘The best mobile Business Financial Analysis (2009-2010). broadband provider’, and VP Product Marketing Group He earned a degree from Sekolah Tinggi (2012). She also served as Teknologi Telkom in 1995, followed by a the GM for Contact Center & Magister Management degree in Finance Customer Service Management from Sekolah Tinggi Management in 2018 and the GM for CLM Bandung in 2003, where he was named Development, when Telkomsel best graduate. He has also attended won ‘The Best Call Center Asia- many training courses domestically and Pacific’. abroad including at London Business School, INSEAD and the Kellogg School She graduated from Bandung of Management, USA. Institute of Technology (ITB) in 1990 with a degree from He is presently on the Board of the Engineering Faculty and the Jendral Soedirman Education immediately began her career Foundation (2012-present) and the at the Telkom Headquarters. Chairman of the Board of the Senyum In 2019 she was named Ananda Foundation (2010-present). Marketeer of the Year 2019 Jabodetabek by Markplus, and she also received the Satyalancana Pembangunan Postel medal from the President of the Republic of Indonesia in 2016.

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Goh Hui Min (Rachel Goh) Heri Supriadi Director of Marketing Director of Finance

Ms. Rachel Goh Hui Min has served as Mr. Heri Supriadi has served as Director of Director of Marketing from July 2019. Finance since May 2012. He is responsible She has over 20 years of experience in for the overall finance and procurement the telco and tech industry. Known for functions. her passion of defining new norms, she leads Telkomsel's Core Product, Gaming & Prior to joining Telkomsel, he was E-Sports, Digital Video, MyTsel App, Pricing, President Director of PT Telkom Property Advanced Analytics, Customer Journey (2010-2012) and held several important and Brand & Marcoms teams towards positions at PT Telekomunikasi creating more exciting experiences for Indonesia Tbk such as Vice President Indonesians. In her pursuit, she of Investor Relations and Corporate forges strategic partnerships with Secretary (2009-2010), Vice like-minded providers in the Digital, President of Subsidiary Content, Media, Devices, Apps, Performance (2007-2010), IT and Technology ecosystem Assistant Vice President of to co-create new propositions Subsidiary Performance for the customers. Under her (2007) and Assistant Vice leadership, the Marketing President of Funding and team also collaborates closely Debt Management (2006- with Sales for more effective 2007). and digital go-to- market approaches, and Mr. Heri Supriadi graduated energizes the market with with a Bachelor degree in unconventional brand and Industrial Engineering from social media campaigns. Bandung Institute of Technology (1991) and has a Master degree Prior to joining Telkomsel, she in Business Administration from was Chief Marketing Officer at Saint Mary’s University, Halifax, Niometrics (2017-2019), Executive Canada (1997) as well as a Director of Marketing at Doctoral degree in Business Ooredoo (2015), Management from Padjadjaran Senior Director, International University, Bandung (2013). He Group at Singtel (2013-2014), has attended various executive Chief Marketing Officer E& VP Marketing education programs at Harvard and VP Product Lifecycle Management at Business School, Kellogg School Telkomsel (2008-2012), and Marketing & of Management, Euro Money, and The Strategic Planning, Singtel Group (2000- University of Auckland Business School 2008) among others. He is a visiting lecturer at various universities and the author of books She holds a Master of Science in on Strategic Management & Research Telecommunications, and Bachelor of Arts Methodology. in Marketing and Mass Communications from Australia. 43

ANNUAL REPORT 2019 Edward Ying Siew Heng Director of Planning and Transformation Irfan A Tachrir Mr. Edward Ying Siew Heng has served as Director of Director of Human Capital Management Planning and Transformation since May 2012. He is now responsible for leading the Digital Services as well as Mr. Irfan A. Tachrir has served as Director developing Corporate Strategy and Transformation. of Human Capital Management since his appointment in May 2017. He previously served as Director of Commerce of Telkomsel since November 2011. He has vast leadership Since joining Telkomsel, he has held experience in the telecommunication industry, various strategic positions including particularly in the , entertainment and content Senior Vice President Corporate Secretary business, in many countries. From 2008 to 2011 he (2014-2015), Vice President Corporate was Chief Multimedia Group at Singtel, where Counsel (2012-2014), Head of Wholesale he successfully led the company to become a Management Group (2012), Vice leader in local content, the media landscape President International Roaming and Pay TV businesses. He also served as COO (2009-2012) and VP Synergy & of , ’s largest Partnership (2008-2009). mobile operator (2003-2008), with primary responsibility for developing the multimedia He holds a degree content business, marketing, channel in Economics and management, customer service and network Development Law from operations. He was Chief Operating the Padjadjaran University, Advisor and a member of the Board of and has attended various in the Philippines from executive education 1996 to 2003. He also served as Chairman of programs, such as the Metraplasa, a joint venture company between Management Program at PT Telekomunikasi Indonesia and eBay the Singapore Management (2013-2015). From 1995 to 1996, he served as University (SMU), and Managing Director at Cambridge Cable Group a Leadership Course at Pay TV Business in the United Kingdom, a the University of California, subsidiary of Comcast Corporation (USA). Berkeley, USA. He was also awarded Indonesia’s Best He graduated with a degree in Marketing from Corporate Secretary in 2015 by the Institute of Marketing, United Kingdom SWA Magazine, a Satyalancana (1987), holds a Diploma in Sales and Wira Karya medal in 2016, and Marketing from the Marketing Institute of Excellence in Performance in the Singapore (1985) and also attended the 16th Annual Selular Award 2019. General Management Program at the National University of Singapore in 1984 and the International Executive Program at INSEAD, Fontainebleau, France (1996). In 2015, he attended the “The Corporate Entrepreneur – Driving Innovation and New Ventures (TCE)” executive program at Stanford Graduate School of Business in California, USA and in 2016, the “Leading Business into the Future“ Executive Leadership Program at London Business School, London, United Kingdom.

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Bharat Alva FM Venusiana R Director of IT Director of Network Mr. Bharat Alva has served as Director of Information Technology since May Mrs. Venusiana R. has served as Director of 2019, where he actively drives the Digital Network since her appointment in January Transformation process for Telkomsel in 2020. She has over 25 years of experience addition to being responsible for all aspects in the telecommunications industry. She has of IT. As Director of IT at Telkomsel, deep expertise in the telecommunication his vision is to elevate technology to a industry specializing in large-scale Network, ‘business partnership’ role. Marketing, Sales and Procurement. She is also a Commissioner of Telkom infra (2017-present). He has over 30 years of experience with leading global ICT technology As Director of Network at Telkomsel, she is solutions/service providers in responsible for defining Telkomsel’s overall Australia, Hong Kong, Thailand, India network strategy and leading the network and USA. In his various senior transformation to implement superior leadership roles, he has focused digital network connectivity which has on strategy, innovation, focuses significantly on Prime Zones, transformation and seeking B2B and Digital Solutions. results that reflect business growth. Many of the products She previously served in a number of and services developed under senior positions including Senior Vice his leadership have been President Procurement (2017-2019) where recognized with industry she led the transformation of procurement awards for innovation and by adopting best practices and leveraging mobile solutions. synergies across the group, Senior Vice President Consumer Marketing (2016-2017), He was previously CIO at Optus where Executive Vice President Area Jabotabek he was responsible for all IT services Jabar (2013-2016), Vice President Area in Australia. He held various senior Jabotabek Jabar (2010-2013), Vice President regional roles within the Singtel Customer Lifecycle Management (2010), Vice Group including VP for Online President Radio Access Engineering Java-Bali and Enterprise Technologies, at Telkomsel (2008-2010), and VP Network Head of Wireless services and Operation (2005-2008). GM Advertising and Finance. He was responsible for leading She earned an Electrical Engineering strategic transformation programs in degree from Universitas (UNDIP) the areas of Digitization, Business support and a Magister Management degree from systems, Business intelligence, Analytics, Universitas Hasanuddin (UNHAS). She received the Automation and Value Added services. Satyalancana Pembangunan special government award from the President of the Republic He holds an Engineering Degree in Indonesia in 2015 for successfully deploying BTS Computer Technology from Pune infrastructure all over Indonesia including the IKK University and has attended various global (Ibu Kota Kecamatan) Program. executive management programs.

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ANNUAL REPORT 2019 Emma Sri Martini President Director (served until January 2020)

Ms. Emma Sri Martini served as President Director from May 2019 to January 2020. Before that she successfully led PT Sarana Multi Infrastruktur (Persero), Indonesia's state-owned infrastructure financing institution, from its establishment by the Minister of Finance until it is transformed into a major national financing institution able to support national growth and important strategic projects including National Strategic Projects. By creating innovative financing solutions including Public- Private Partnerships as well as syndicated loans from both domestic and foreign lenders, Ms. Emma Sri Martini successfully developed the company to play an important role in infrastructure development in Indonesia as well as gaining the trust of many bilateral/multilateral institutions.

She was previously President Director at PT Sarana Multi Infrastruktur (Persero) (2009-2019), Director of Finance & Support at PT Perusahaan Pengelola Aset (Persero) (2004- 2009), Commissioner at PT Trans-Pacific Petrochemical Indosatama (2004-2009), Division Head System & Support at the Indonesian Bank Restructuring Agency (2001-2004), Department Head System Development Department at Indonesian Bank Restructuring Agency (2001-2004) and Department Head System Development, Indonesia Central Securities Depository (1995-1998).

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Bob Apriawan Director of Network (served until May 2019) Iskriono Windiarjanto Director of Network (served until January 2020) Mr. Bob Apriawan served as Director of Network Mr. Iskriono Windiarjanto from May 2017 to served as Director of May 2019. He Network from May joined Telkomsel 2019 to January in 2002 and has 2020. He was more than 26 responsible years of telecom for the overall experience management and including 11 years at control of network Telkom, the largest infrastructure to telecommunications maintain superior services company in connectivity. Indonesia. Prior to his appointment to the Board of He has extensive Telkomsel, he served in a number of senior experience in many positions including Senior Vice President disciplines in the Telkom Group, the largest Procurement (2013-2017), Vice President Asset telecommunication services company in Management (2012-2013), Vice President Indonesia. Prior to his appointment to the Board Organization and Workforce Management (2012), of Telkomsel, he served in several board positions Vice President HR System (2010-2012), and Vice including CEO of PT. Telkomsigma (2018-2019), President Radio Access Engineering Outside President Director of PT. Telkom Akses (2017- Java-Bali at Telkomsel (2008-2010). He also 2018), President Director of Telkomedika and served on the Board of Commissioners at Telkom CEO of Admedika (2016-2017). Infra (2016-2017) and Mitratel (2018-2019).

He holds a Bachelor’s degree in Informatics He holds a Bachelor’s Degree in Electrical Engineering from Institute Teknologi Sepuluh Engineering from the Diponegoro University, November (ITS), and a Master of Information and Master of Science in Operational Technology degree from Royal Melbourne Telecommunication from the Coventry University Institute of Technology. He received a Special UK. He also attended a Strategic Business Award from International Best Wireless Leadership program at The University of Chicago Broadband Solution from Informatech for Booth School of Business, USA. successfully deploying BTS infrastructure in remote and border areas, in line with Telkomsel’s commitment to provide the best mobile telephony and broadband service across nation.

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ANNUAL REPORT 2019 Alistair Johnston Director of Marketing (served until June 2019)

Montgomery Hong Mr. Alistair D. Johnston served as Director of Marketing from Director of IT (served until May 2019) August 2012 to June 2019. Mr. Hong served as the Director of IT until May 2019. He He is an experienced has deep expertise in international business the Communications leader with a proven industry specializing track record of driving in large-scale business growth Business, in state-owned Digital, and IT enterprises, multi- Transformation national corporations programs for and start-ups. He has many world-class successfully transformed companies across traditional telecommunications North America, Europe, businesses into digital businesses through a and Asia Pacific. He has combination of thought leadership, people leadership worked with the majority of the and rigorous implementation of transformational leading software and hardware providers. ideas.

Prior to joining Telkomsel, Mr. Hong served as Prior to Telkomsel, he served as Group Chief Singtel International Group’s Regional CIO where Marketing Officer at Augere from 2010 to 2012, where he was responsible for leading the development he oversaw commercial activities for this start-up of a Regional IT Roadmap and Vision, defining business offering Internet connectivity to under- key IT capabilities required for the evolution to a served emerging markets spanning across India, Digital Service Provider, and working closing with Pakistan, Bangladesh and Uganda. the Singtel Group Associates to align and adopt best practices and leverage synergies across the From 1998 to 2010 he held important roles in the Group. UK telecommunications industry. This included Telefonica O2 UK (2007 – 2010) where he served Mr. Hong attended Willamette University in as Head of Prepay, Head of Online and Marketing Salem, Oregon, USA, and holds Bachelor of Arts Director and helped to build the O2 business into and Masters of Management degrees. A frequent a strong market leader; Orange UK (2004 – 2007) keynote speaker at industry conferences, Mr. where he served as Head of Prepay Acquisition and Hong has published numerous articles, and Retention and British Sky Broadcasting UK (2003 – previously served on the Board of Directors and 2004). From 1998 to 2003 he worked for Sir Richard Senior Leadership Team for the TM Forum. Branson’s Virgin Group of companies in a business development role in the UK, Australia and Singapore and was a founder of the Virgin Mobile businesses in the UK and Australia.

He began his career as a Management Consultant at Andersen Consulting, based in London, UK.

He holds a degree in Modern History from Oxford University, UK and has attended a number of management programs, including at Harvard and Stanford Universities. 48

PT Telekomunikasi Selular Rema r ks f om the M anagement

Sukardi Silalahi Director of Sales (served until May 2019)

Mr. Sukardi Silalahi served as Director of Sales from May 2017-May 2019 and Director of Network from January 2015-May 2017. He is presently CEO of Telin. Since joining Telkom in 1991, he has served in a number of senior positions prior to his appointment to the Board of Telkomsel including as Board of Commissioners of various Telkom subsidiaries, Director of Consumer Service at Telkom (2012- 2014), Executive General manager of Consumer service, East Division (2011-2012) and Deputy Executive General Manager of Consumer service, West Division (2010-2011).

He holds a Bachelor degree in Civil Engineering from the Bandung Institute of Technology (ITB) and a Master’s Degree in Business Administration (Cum Laude) from the University of Gadjah Mada (UGM). He has also attended the “Making Corporate Boards More Effective” executive program from Harvard Business school, International Business management Training in Sweden and High Performance Boards Training at ImD in Switzerland.

He was a recipient of the Satyalancana Pembangunan medal from the President of the Republic Indonesia in 2013. In the same year, he was also appointed as the Community Director of the BUMN (State Owned Enterprise) Marketers Club. He also won The Best BUMN on Marketing award in 2013 and The Best Service Provider of The Year award in recognition of his milestone achievement in positioning Telkomsel as the operator with best network quality in Indonesia, based on Open Signal data for 2015 and 2016.

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ANNUAL REPORT 2019 Company

12

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ANNUAL REPORT 2019 Telkomsel is a subsidiary of Telkomsel’s trajectory mirrored As Telkomsel transforms into a PT Telekomunikasi Indonesia Tbk these results, closing 2019 with solid Leading Digital Telco Company, the (65%) and Singapore Telecom revenue achievement and positive Digital Business continued to be Mobile Pte Ltd (35%). We have the performance. the engine of growth, supported by country’s widest network coverage a focus on maintaining Telkomel’s with estimated 2G population A variety of strategic initiatives to dominance in 3G and 4G network coverage of almost 100%, 3G maintain and improve profitability supply. The Digital Business segment population coverage of 86% and drove Telkomsel to record positive recorded strong performance 4G population coverage of 95%. In Revenue, EBITDA and Net Income of 23.1% YoY and increased its 2019, we deployed 23,162 new Base growth amounting to 2.1% YoY, 3.7% contribution to total revenue Transceiver Stations (BTSs), all of YoY, and 1.0% YoY, respectively. This substantially to 63.9% from 53.0% which were 4G-based. At the end of was supported by transformation last year. Revenue growth was 2019, Telkomsel’s on-air BTS totaled initiatives in Digital Business as supported by Data user growth 212,235 units of which 76.3% were the engine of growth, along to 110.3 million users and higher 3G/4G BTS. with cost leadership initiatives to smartphone penetration amounting effectively manage operational Our go-to-market brand for expenses leading to EBITDA margin postpaid customers is kartuHalo improvement from 53.2% to 54.0%. while for prepaid customers, accounted for around 96% of our base, we have three distinctive brands targeted at different 212,235 customer segments: simPATI, Kartu BTS operating in across Indonesia As and LOOP. Telkomsel recorded 171.1 million subscribers in 2019, an increase of 5.0% YoY. 5,465 171.1 The telecommunications industry employees million in Indonesia returned to positive customer territory in 2019 after experiencing negative growth in the previous year. The competitive environment became healthier and more rational, 35% while the ongoing transition Singapore Telecom of Legacy to Data services saw Mobile Pte Ltd customers’ behavior shifting amidst various Data monetization initiatives.

65% PT Telekomunikasi Indonesia Tbk

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PT Telekomunikasi Selular Company at a glan c e

The Digital Business segment recorded strong performance of 23.1% YoY and increased its contribution to total revenue substantially to 63.9%.

to 69.7%, as well as healthy growth program which resulted in a Indonesia. As Data consumption and in Data payload, which increased better-quality customer base, Data pricing still lags the regional by 53.6% YoY to 6,715,227 TB, and with higher numbers of real active average, we believe that Data growth in Data consumption per subscribers and improvement in consumption growth is likely to user by 5.2 GB. ARPU as well as more efficient SIM increase going forward. A number of card production costs. This program investments and key initiatives have In parallel, we continued our internal will also have positive long-term been established to accelerate the organizational transformation impact and support the emergence growth of Digital Business, in line to become a Customer-Centric of healthier competition in the with Telkomsel’s mission to meet organization in order to face the industry. customers’ shifting preferences to challenges of a digital age. We also digital and build a digital Indonesia, complied with and supported the We continue to see opportunities as well as deliver excellent network government SIM card registration in the telecommunication industry coverage and quality. since Data revenue growth is expected to remain stellar in

1995 1996 2001 2002

Telkomsel was KPN Netherlands (KPN) Telkom acquired Singtel Mobile increased established by and PT Setdco Megacell shares to its ownership by PT Telekomunikasi Asia (Setdco) acquired increase its ownership 12.7%, bringing its Indonesia Tbk (Telkom) stakes in Telkomsel to 77.7%. KPN and total ownership in and PT Indosat Tbk of 17.3% and 5%, Setdco’s shares were Telkomsel to 35% with (Indosat). respectively. acquired by Singapore- the remainder 65% based Singtel Mobile. owned by Telkom as the majority owner. Share Ownership History Ownership Share

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ANNUAL REPORT 2019 Board of President Director Commissioners

Positioned as the postpaid brand of Positioned as the prepaid brand for choice for professionals and corporate the savvy middle class segment, customers, kartuHalo provides an simPATI is Telkomsel’s award unparalleled suite of full mobile services winning lifestyle prepaid brand. and exclusive privileges. We expanded simPATI continued to offer an our kartuHalo brand to embrace the exciting range of innovative young professionals, positioned kartuHalo packages and campaigns to drive as the coolest and best value postpaid demand for mobile Data. card for middle and upper segments.

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PT Telekomunikasi Selular Company at a glan c e

Planning & Information Marketing Finance Transformation Technology Directorate Directorate Directorate Directorate

Human Capital Network Sales Directorate Management Directorate Directorate

Positioned as an ‘Affordable, Positioned as the prepaid brand Value Prepaid Brand’, Kartu As which targeting the youth segment. is Telkomsel’s prepaid brand With the tagline “Ini KITA” (This Is targeted at value seekers Us), LOOP has a youthful image and offering the best value supported by its brand proposition to customers. of “being better together” and a focus on offering attractive Data and Digital Services.

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ANNUAL REPORT 2019 • The introduction of • The first to trial the a secure mobile-to- implementation • Kicked off mobile mobile prepaid top • Became the Pioneer of Long Term Data services, up system. in renewable energy Evolution (LTE) including WAP • Joined regional powered BTS in Asia. network broadband over GPRS mobile alliance • The launch of technology in • Telkom and PT (General Packet () for Indonesia’s first Indonesia. Indosat established Radio Services), enhanced customer • The first commercial mobile Voice and • The introduction Telkomsel. MMS (Multimedia benefits. launch of 3G Data services for of Indonesia’s first • Launched kartuHalo Messaging Services), • Launched Kartu As network services in ships on the Mobile Newspaper postpaid service. and content services. prepaid service. Indonesia. open ocean. services.

1995 2002 2004 2006 2008 2010

1997 2003 2005 2007 2009

• Offered mobile • The first • Our Call Center • Introduced push • The launch of HSUPA telecommunication commercial launch acquired email services. (High Speed Uplink services to all 27 of international ISO9001:2000 • Rolled out of Packet Access) provinces. roaming services to certification. HSDPA (High broadband network • Launched simPATI Indonesian prepaid • The launch of Speed Downlink based services. Nusantara as the customers. Mobile Banking Packet Access) and • Kicked off Desa Dering first prepaid service ATM services. Telkomsel Flash Program to provide in Asia. service. telecommunications • Launched TCASH access for over 25,000 to facilitate villages. mobile financial transactions.

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• LinkAja was officially launched • Focused on creating on June 30, 2019 under PT. a consistently Fintek Karya Nusantara, LinkAja, excellent Customer a collaboration of SOEs 'From Experience (CX), IoT and For Indonesia', is the only Digital Ecosystem for fintech supported by a variety of • Surpassed the Fleet Management cross-sector businesses such as target of 100 • Telkomsel launched 3 and New Talent banking, insurance, oil. million subscribers Masterpiece programs: Management to • Dunia Games has released its which positioned Digital World, Great support Digital newest e-game, Lord of Estera. Telkomsel as • The launch of Payment Experience Mastery. As an RPG (role-playing game) the world’s Masterpiece, a and TrueBEx (True • Awarded 30 MHz online mobile game application, seventh largest program that Broadband Experience). additional spectrum Lord of Estera has a variety of telecommunication included 268 units • Completed spectrum on the 2300 MHz game modes, characters, and operator by of mobile GraPARI, re-arrangement in 1800 frequency by the in-app purchases. customer base. the establishment MHz, and launched government, which • Telkomsel officially launched • The inauguration of 268 mobile LTE in 14 cities with 2.2 will be used to by.U, the first digital prepaid of Indonesia’s Broadband Cities, million LTE users. provide the best cellular service in Indonesia first Research & 68 applications from • Exceeded 100 Data services to that provides an end-to- Development local developers Thousand BTS and 150 customers and end digital experience for all Facility for cellular to support the million customer base. support the 2014- telecommunications needs, from technology. development of • Achieved Triple 3 2019 Indonesian choosing a number to getting a • The introduction digital creative Strategy, with Enterprise Broadband Plan [as SIM card, topping-up balance and of Tap Izy, industry. Value > Rp300 Tn, part of Telkomsel’s quota, and making payments. Indonesia’s first • The launch of 450 3 Year Cumulative commitment to the • Telkomsel successfully tested mobile contactless units of Compact Revenue of 33%, nation]. its 5G network in Batam, Riau payment system Mobile Base Station and Digital Business • Telkomsel 4G LTE Islands with the first video call that turns mobile (COMBAT). Contribution of 33% coverage reached using a 5G connection as well as phone into an • Successful LTE trial of Revenue which was 490 kabupaten cities a successful 5G speed test. electronic wallet. during APEC 2013. achieved in Q4-15. across Indonesia.

2011 2013 2015 2017 2019

2012 2014 2016 2018

• The introduction of • Telkomsel launched • Executed 3 • Expanded positioning on the first Seamless Masterpiece Masterpiece Video ecosystem by launched Mobile Wi-Fi programs: CRM, programs: Big MAXstream, a one stop video to Indonesian M2M and Winning Data, Lead 4G, portal which aggregating OTT customers for The Youth. and Customer video apps, linear channel and transferring • Telkomsel & Telkom Experience. VOD content. automatically from reached agreement • Expanded LTE • Launched the first 5G a 2G/3G network on a Conditional coverage to more technology experience through connection to a Wi- Business Transfer than 80 Broadband the “Telkomsel 5G Experience Fi network to access Agreement (CBTA) Cities across the Center” which was open to the highspeed data. to utilize Flexi’s country. public during the Asian Games spectrum. • Achieved five 2018. • Telkomsel became consecutive years • Extended TCASH services the first to of Triple Double to customers of any commercially launch Digit growth in telecommunication providers 4G LTE in Indonesia. Revenue (+14.0% so that it can be utilized by YoY), EBITDA everyone and used for diverse (+16.9% YoY) types of digital transactions and Net Income easily, anytime and anywhere. (+26.1% YoY). • Launched first Indonesian original series, Brata, which can be watched on MAXstream • Published first game, Shellfire, an e-sport game to target the existing gamer communities.

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E-SPORTS T E L K O M S E L

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ANNUAL REPORT 2019 After experiencing negative growth in 2018, the Indonesia mobile telecommunications industry bounced back in 2019, driven by steady growth in Data service and Vision supported by robust SIM Registration in a bid to maintain high quality customers.

Telkomsel experienced a similar trajectory, rebounding from -4.3% trusted provider of mobile digital YoY growth in 2018 to achieve +2.1% lifestyle services and solutions YoY growth in 2019, as a result of accelerating growth in Data service revenue at +22.3% YoY and Digital Services revenue +29.0% YoY, confirming Telkomsel’s belief in Data and Digital Service as the future of the telco industry and returning Telkomsel’s EBITDA and Net Income growth to positive territory at Mission +3.7% and +1.0% YoY respectively, compared to -11.5% and -16.0% in 2018. Deliver mobile digital services and Growth was supported by a steady solutions that exceed customers’ increase in 4G penetration which in turn stimulated an increase in expectations, create value for our Telkomsel subscriber Data usage to 5.2GB per Data User (+54.7% stakeholders, and support the YoY growth). Telkomsel revenue growth was also supported by the ability to maintain mid-high quality customers and continued focus on the youth segment, which was achieved through appropriate product diversification together with better network experience and quality as shown by the +13.3% YoY increase in ARPU and +5.0% YoY subscriber growth.

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Telkomsel also increased customer and “Transforming the Operating Digital Business”, and “Driving Smart usage and improved their experience Model”. These objectives were Initiatives on Cost Effectiveness”. by giving better value offerings formulated to prepare Telkomsel As shown by its operational and including content enrichment on for the inevitable decline in Legacy financial performance, Telkomsel Digital Services such as Games, Business and to accelerate the successfully achieved its Corporate Movie, e-Payment and so on, as well growth of Digital Business. Theme for 2019. as partnering with content provider towards strengthening customer In 2019, these objectives were Going forward, Telkomsel will engagement and loyalty. Telkomsel implemented via 5 main programs. continue to capitalize on the moreover leveraged its strong The first objective, Sharpening the growth in Data and Digital Service network and new digital businesses Core, was supported by a program to realize its future as a leading to solidify its position in the digital of "Gain High Value Customers Digital Telco and Data-centric savvy and millennial segments. across Families & B2B". The second Company. Telkomsel is committed objective, Creating Expansive Offers, to deliver the best Data Connectivity Furthermore, 2019 marked the was supported by 2 programs, by ensuring the availability of 4G successful spin-off of Telkomsel’s namely "Scale-Up Digital Advertising service throughout Indonesia, Mobile Financial Service product, and Big Data" and "Drive Dominant with 95% population coverage TCASH, which was rebranded Share of Indonesian Gaming already achieved today. In addition, as LinkAja and is now one of the Ecosystem". The third objective, Telkomsel is also committed to major players in the flourishing "Transforming the Operating build Indonesia’s Digital Ecosystem, Indonesia digital payment ecosystem Model", was channeled through not only developing its own Digital landscape. the "Accelerating Digital Channels Services (such as Digital Advertising, using LinkAja" and "Innovative Digital IoT, Big Data, and Digital Lifestyle Those achievements were Talent Sourcing" programs. to name a few) but also leveraging made possible by the successful all relevant telco assets owned implementation of Telkomsel’s Specifically for 2019, Telkomsel also by Telkomsel to become a Digital 5-year Corporate Strategy Plan, established a Corporate Theme, Service enabler. which has established the following namely “Lead Performance for Strategic Objectives: “Sharpening the Healthy Growth & Profitability”. This Core”, “Creating Expansive Offers”, was then cascaded into three pillars: “Embracing Best-in-class Digital Customer Experience”, “Intensifying

Telkomsel experienced a similar trajectory, rebounding from -4.3% YoY growth in 2018 to achieve +2.1% YoY growth in 2019, as a RESULT OF accelerating growth in DATA SERVICE REVENUE AND DIGITAL SERVICE REVENUE.

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ANNUAL REPORT 2019 In order to transform and achieve Overall, all programs were to customer-centric by adapting its its ambition to become a Digital successfully completed and organization structure to support Company and a leading Mobile delivered positive contribution to end-to-end B2B (Business to Digital provider, Telkomsel continues Telkomsel’s performance during Business) and B2C (Business to its transformation journey, which the year. Consumer) segmentation. Telkomsel touches on all aspects of the also strengthened enablers and business including its ecosystem, TO BUILD THE FOUNDATION support functions through business organization, people, and culture. IN 2019 partnerships in IT, Network, Human Capital Management, Finance, To ensure that the fundamentals of Telkomsel is in the process of and Legal. This transformation is still the Company can provide proper developing a future-fit organization ongoing. support for growth drivers in every to change the company’s focus aspect, critical enablers include from product and network-centric As a part of this organizational future-fit organization, energized change, Telkomsel has centralized workforce, and lean operation. certain functions such as Procurement and General Services Innovation In 2019, with reference to its within Areas and Regions in order to corporate strategic plan, Telkomsel drive economies of scale. Telkomsel established a number of programs also enhanced the application under three major mobile process for internal employees and transformation categories, with the implemented a new performance overall goal of building up the Digital Business, while defending Legacy and expanding Data connectivity. REDEFINE DATA MARKET

DATA-CENTRIC Segment Expansion LEADERSHIP Segment Expansion B2B FAMILY/HOME ACCELARATOR EXPANSION

ABSOLUTE TECHNOLOGY LEADERSHIP People Lead, Beyond Infratructure

FUTURE FIT ENERGIZE LEAN OPERATIONS ORGANIZATION WORKFORCE Simplification & Zero Base Organzation Culture & Capabilities Maximum Digital

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80 employees passed Telkomsel’s ABSOLUTE TECHNOLOGY Data Science and UX Academy LEADERSHIP training, as well as 50 leaders. Telkomsel needs to accelerate its Even more development programs ability to build new competencies have been planned for next year in order to support its many in the form of Internships in innovations in the future. As such, Singtel Group, as well as Business IT Technology Advisory and IT Agile Intelligence, Pricing Analytics, projects were implemented to help Human Centric Design and Mobile ensure that the technology in use management system towards SW Developer training. A culture by Telkomsel, as well as the human ensuring the creation of a high- program was also developed in the resources deploying it, are aligned performance organization. form of an Entropy Index Survey and and adequate to support strategic activation of three culture markers: projects. In the future, we believe People are the key to unlocking Agile, Open Mindset, and that Telkomsel will operate many transformation. Under Energized Experimental. innovations and that will be Workforce, Telkomsel is focused on supported by the acceleration of enhancing internal digital capabilities To ensure ambience and knowledge building new capabilities. and processes through action. In distribution access for new order to drive Product Innovation, capabilities in entire organization, In addition, we also transformed in 2019, agile squads were formed Telkomsel conducted numerous our sales channels and increased to drive innovation in B2B, Digital, activities, including Transformational point of sales productivity as well as and Family. Expert Development Festival (T.E.D strengthening our channel synergy. Fest), T-Flyers Talks, and Podcast This year, Telkomsel also took (T-Flyers Podcast). corporate action to energize its driving growth THROUGH workforce through TMI (Telkomsel SEGMENT EXPANSION AND Digitalization is key to creating lean Mitra Inovasi) and Finarya (Fintek PRODUCT INNOVATION operations. Moana, a one-stop Karya Nusantara or LinkAja). In app for employees, was enhanced In 2019, B2B accelerated its growth addition, Telkomsel built up both and relaunched in 2019. Moana by achieving end-to-end integration the external and internal digital integrates and helps employees and accountability, from sales funnel ecosystem through various activities, carry out administrative office to collection and segment-based i.e. IndonesiaNEXT, InnoXtion, activities such as General Services, development. In the Government The NextDev and TINC (Telkomsel Human Capital Management, and segment, we achieved growth Innovation Center). Finance. The app digitizes many by partnering with Telkom Group functions which used to be done for a New GTMA (Go to Market Telkomsel also launched Telkomsel manually. Also in 2019, Telkomsel Agreement). In the Large Enterprise Expert Development Program, a new initiated the implementation of segment, we pushed growth by capabilities program that provided RPA (Robotic Process Automation), providing effective solution mixes. training for new skills, namely Data which aims to automate many Whereas in the SME (Small Medium Science, UX, and Leadership. These repetitive tasks towards a more Enterprise) segment, growth was opportunities attracted more than streamlined operation. driven by our digitized Small & 2,000 applicants to apply. More than Enterprise platform called ‘99% Usahaku’. B2B also carried out a

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ANNUAL REPORT 2019 radical transformation in terms of its journey and simplifies experience. basics, by simplifying the business It was built by harnessing business which ultimately improved customer insights to drive innovation using journey. This transformation an IT platform and approaches was executed by shortening the combined with a lean organization processing time to less than one model. day from customer discovery to contracting, and eliminating or Commitment to enabling self-service for 60%+ of Transformation Product all issues, thus reducing account manager time spent on customer Telkomsel’s transformation will innovation care to less than 20%. continue with a focus on 4 key areas. First, Telkomsel will focus is always a Under the ‘Data Centric Leadership, on commercial transformation by we developed our data management continuing ongoing B2B programs priority for platform with selected partners. All and creating new B2C programs, digital ad platforms were integrated supported by the formation of agile Telkomsel. into this so as to better serve B2B squads across the organization. and B2C customers. In 2019, we The second focus is to digitize Under the third program in this the core business towards driving launched category, Family and Home more efficient internal processes. ‘BY.U’, the first Expansion, Telkomsel focused on Third is to strengthen the corporate delivering the best home solution culture and new ways of working end-to-end services for customers through towards enabling a mindset shift collaboration and partnership. This and behavioral change. Fourth, digital prepaid resulted in the Indihome Fixed to continue to speed up new Mobile Convergence Bundling capabilities. cellular Product for both postpaid and prepaid. We are confident that this service in transformation is fully supported by Product innovation is always a our employees which can be seen Indonesia. priority for Telkomsel. In 2019, we from Telkomsel’s internal survey. launched ‘by.U’, the first end-to- Employee buy-in was also evident end digital prepaid cellular service from the changes in behavior in Indonesia. This innovative during many corporate mobile application targets the activities. youth segment and is expected to help redefine our data market as it supports savvy digital behavior and online interactions. ‘by.U’ offers a better customer

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Marketing Program and Postpaid Credit Limit self-service feature. Strategies kartuHalo is a Telkomsel postpaid Customer also have a choice of product that is positioned as payment channels for convenient To complete the company’s the choice for professionals and online bill payment. transformation into a leading Digital corporate customers seeking Telco Company, in 2019 Telkomsel convenience. kartuHalo offers In 2019, kartuHalo had two main rolled out various programs, excellent customer experience, programs. The first, Halo Kick promotions and product offers to extraordinary value and exclusive Gold & Platinum, was an ongoing maintain Legacy revenue and drive lifestyle privileges tailored to program that offered higher quota, Digital Business as the primary suit customers’ needs. In 2019, more rewards, entertainment, engine of growth. Telkomsel enhanced kartuHalo’s and premium benefits geared to value propositions by offering convenience-seeking professionals. These marketing strategies and premium entertainment services and Customers who subscribed to this programs were carefully aligned better device bundling offers. Thus, package automatically enjoy all with specific customer segments kartuHalo is positioned as the best the benefits of being a Gold and and personalized offerings were value and most convenient postpaid Platinum customer. delivered through digital channels card for the middle and upper for efficient implementation. customer segments. The second program was Halo Telkomsel also focused on improving Play, a collaboration with HBO GO payload growth and acquiring Data Telkomsel continued to lead in the and several OTT video streaming users. Customers were encouraged postpaid market by comprehensive providers. This program targets to use more Data by providing more mobile services and entertainment customers looking for complete relevant content and digital product with user convenience, excellent mobile services package bundled that they can enjoy anywhere. customer experience, and exclusive with premium entertainment lifestyle privileges tailored to subscriptions such as HBO Go, To bring more engaging and relevant customers’ needs. Telkomsel also Viu and Vidio, as well as higher content, Telkomsel partnered with expanded its channels and enriched entertainment quota. This package strategic partners from multiple customer benefits by strengthening is suitable for an urban lifestyle that verticals to enrich content on our collaboration with strategic enjoys entertainment on the go. existing digital platform and offer partners such as banks, device ”more for more” programs across principles, device distributors, and our value propositions. e-commerce. In 2019, kartuHalo’s customer base recorded double- digit growth of 18.1% to 6.4 million subscribers.

kartuHalo tries to ensure that customers can enjoy postpaid services with peace of mind by enabling them to manage their spend limit using the kartuHalo

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ANNUAL REPORT 2019 Prepaid were offered combo packages to Telkomsel has three prepaid brands, encourage Data usage. Big voice each targeted at different customer minute quota is offered through our segments. simPATI, our most popular Talkmania Ultima package to shift prepaid brands designed to cater customer to purchase package. to the needs of most customers, Customers who purchased the whereas Kartu AS is designed for unlimited voice packages were given the value-seeking segment, and opportunities to win a lucky draw. LOOP brand positioned for the youth or next-generation segment. To boost the Digital Business, During 2019, LOOP committed to Telkomsel focused on enriching delivering digital product innovation, content and give more value for relevant engagement programs customers so as to encourage higher and digital platform tailored for the usage. Under the simPATI brand, needs of youth users. In 2019, the Telkomsel released a special value total number of Telkomsel's prepaid simPATI entertainment starter pack subscribers exceeded 160 million. which includes 3GB of Maxstream quota. Under the Kartu As, Telkomsel organized the Pesta Kuota program which offered 10GB Data package for only Rp 10, for customers who topped up a certain amount of Throughout 2019, Telkomsel held credit. Telkomsel also launched many events to improve brand the Ilmupedia package to enrich awareness among customers, education in Indonesia by giving especially the youth segment. For educational content to students, example, the Telkomsel Kickfest, starting from Rp 25,000 for 3GB to held in Malang and Bandung, access online education platforms. featured local musicians, a variety of Other than that, Telkomsel also cuisines and local clothing brands. held stimulation programs giving Telkomsel also developed LOOP extra e-vouchers to customers who Squad, an online content creator purchased Data packages on the academy which provides video In 2019, Telkomsel held many LOOP digital channel, in relation learning for millennials who want programs and activities to to certain events such as public to become better influencers or encourage customers to use more holidays, Independence Day, New content creators. They can also Data. Customers who still mainly use Years and so forth. join various challenges which are our Legacy Voice and SMS service regularly held by LOOP Squad for content creation, with one of the topics being Telkomsel products. In 2019, LOOP had 3,500 LOOP Squad buzzers.

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Telkomsel launched Kuota Keluarga in 2019 to cater to the needs of customers with family. Kuota Keluarga is a large Data package offering up to 90GB at Rp150,000, which can be shared between family members. Telkomsel also accommodated customers needs for low denomination value LOOP continued its collaboration Telkomsel continued to strengthen products by launching a new variant with Gramedia to hold the SBMPTN its commitment as a Digital Telco of internet vouchers that can be (Joint Entrance Selection of State Company that prioritizes customer purchased through a physical Universities) Simulation program needs by personalizing products store or MyTelkomsel apps. These in 19 cities which attracted 16,000 and services offered based on vouchers have a short usage period participants, who also received customer needs. We make it easier of 3 to 7 days with a total quota of free exercise books. Finally, to for customer to consume Digital up to 3.5GB. increase brand awareness, Telkomsel Services content such as video showcased Maxstream’s, Dunia streaming and social media as part MyTelkomsel Games’, and Langit Musik’s digital of their daily lives. MyTelkomsel was enhanced and product experience in a big festival improved in 2019 to support the called Oh My Gig which included a continuous improvement of user music concert, games competition, experience and support their ever- a movie talk show, and more. growing needs. My Telkomsel was also equipped with more payment DATA methods including virtual account In alignment with its transformation payments for major banks, plus initiative to become a Digital MyTelkomsel was connected to Telco Company, Telkomsel held LinkAja and other e-wallets. various initiatives and programs to achieve Data-centric leadership To boost crucial user engagement, supported by best quality digital we reintroduced a Daily Check-in connectivity services. program on myTelkomsel featuring a new look in partnership with LinkAja, In 2019, Telkomsel launched the Oh and other e-commerce. We also My Gigabytes (OMG!) internet quota. provided in-app access to videos The OMG! Package can be used by Telkomsel prepaid customers to access popular applications such as YouTube, Facebook, Instagram, MAXstream, Viu, iFlix, KlikFilm, BeIN Sports and Nickelodeon Play without additional cost.

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ANNUAL REPORT 2019 Loyalty Programs Telkomsel’s Loyalty program strives to increase customer loyalty by rewarding them with satisfying experiences in the form of both online and on the ground events. Telkomsel also rewards customers by enabling them to exchange their Loyalty POIN at Telkomsel’s e-commerce partners.

Telkomsel Siaga Sebar Hepi (Anniversary / Ramadhan Period & End Year Period) This is the biggest Telkomsel Lucky Draw program, and it is held twice yearly. In 2019, the first Lucky Draw period was held around the and TV channels from MaxStream with Veronika, a chat-based virtual Telkomsel Anniversary in May and so users can watch them without assistant, that allows users to ask the second period took place at year leaving the app. Moreover, users about Telkomsel products and end from November to December can play mini-games inside the app. services in a convenient, interactive 2019. During each period, Telkomsel Through the Instagram account way. gave away thousands of prizes @mytelkomsel.app, we encouraged such as luxury cars, motorcycles, users through various promotions At the same time, MyTelkomsel now smartphones, LinkAja balance, to engage in more activities. All of has a more personalized appearance and more. these have driven more than 18 and shows relevant loyalty benefits million users to use MyTelkomsel in line with customers' Loyalty actively every month (MAU). Tier features: Diamond, Platinum, Gold, and Silver. Along with all We also have redesigned and of our accomplishments in 2019, refreshed the MyTelkomsel App to MyTelkomsel received recognition enable users to find information as the Gold winner of the Public more easily and encourage them Relations Indonesia Award 2019 to participate in various programs in the App category, as a result offered. MyTelkomsel is integrated of MyTelkomsel's plans to keep improving and transforming to become the most preferred digital channel among Indonesian telcos and digital users.

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from customers can be converted to money or goods which are then sent to disaster areas, for example to help orphans in Palu during the earthquake in 2019.

Telkomsel POIN the ability to choose the prize and Twin Date Merchants Promo To enhance customer experience shorter draw period. Telkomsel collaborated with partners during POIN redemption and attract to hold Online Shopping merchant customer interest, Telkomsel held promos on several twin dates in special redemption programs for 2019 namely 9.9 (September), Telkomsel POIN such as POINtastic 10.10 (October), 11.11 (November), Deals, POIN Jajan LinkAja and and 12.12 (December). Many Racing POIN. Telkomsel collaborated e-commerce partners contributed with various partners such as to these program such as Zalora, handset distributors, e-commerce Lazada, Shopback and Bukalapak. sites, merchants, LinkAja and more These promos attracted customer to to provide smartphones, vouchers, redeem their POIN. telco packages and LinkAja bonus balances etc. as rewards. Telkomsel also held seasonal programs tied to special events such as Customer Day, Movie Premier and POIN Undi Hepi is a new variant of Festival which customers could lucky draw program which allows participate in by redeeming their customers to choose the prize that POIN. they want.

Undi Hepi Donation Our most waited Loyalty promo Indonesian people have a strong program was enhanced, after tradition of helping one another. listening to customer feedback on Telkomsel provides opportunities for customers to donate their POIN for social causes. For example, POIN

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ANNUAL REPORT 2019 New Airport Lounge Partnership As one of Telkomsel's special programs for HVC customers, Telkomsel provides airport lounges for Gold, Platinum and Diamond customers as well as Executive corporate customers. This service is available at 16 locations throughout Indonesia as part of our attempt to and distributors to offer best device benefits including higher quota of up broaden our service to Telkomsel bundling package and the most to 50GB per month, specifically to customers. profitable bundling packages for support the preorder and launch of device principals and distributors. Telkomsel’s flagship smartphone.

In 2019, Telkomsel strengthened Through the TAU Dynamic Plan, partnership collaboration between which is the main bundling package, device principals and distributors on Telkomsel provided bundled value both the modern device channel and with a long validity period (3 and 6 traditional device channel. months) and a large quota to fulfill Telkomsel collaborated with customer needs. Telkomsel also principals and distributors to bundle launched the TAU Lite 6 and TAU Lite device with SIM cards, vouchers, 4G 7 packages which were bundled with device migration, sales activation affordable 4G smartphones, with and co-marketing with financial, the main objective of boosting 4G insurance, banking, e-commerce, DNA (device, network, application) large enterprise as well as SME. penetration nationwide.

For postpaid customers, Telkomsel Given that e-commerce usage by collaborated with device distributors Telkomsel customers has grown to boost sales at more than 70 significantly, in order to help Device Bundling Programs GraPARI nationwide. Furthermore, to users shop conveniently online, Telkomsel aims to touch the daily increase 4G customer penetration, Telkomsel collaborated with several digital lifestyle of every Indonesian, kartuHalo actively undertook various e-commerce sites and worked keeping customers comfortable tactical promotions involving hand-in-hand with lending platforms and enabling them to enjoy life principals, device partners, banks, to give special installments. Since more through Telkomsel’s brand micro-finance and e-commerce to mid-2019, 62 GraPARI Nationwide experience and services. In order to offer attractive 4G device bundling have established ready-to-sales deliver these initiatives, Telkomsel packages with more attractive partnered with device principals cashback and 0% installments for up to 24 months. kartuHalo bundling packages were also offered with

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devices partnerships with device Interconnection in term of Data quota, coverage distributors. Customers can bundle This year, interconnection continued and duration. Customers can use new device with kartuHalo and to face disruption from OTT their package during stopovers in TAU prepaid plans for maximum (Over the Top) providers in both transit countries without purchasing convenience and the best Data domestic and international voice another roaming package. package experience. services, with both incoming and outgoing domestic traffic declined. Despite facing disruption, the international voice termination service still contributes significant revenue and to secure it, Telkomsel strengthened its network security, preventing voice traffic leakage by routing traffic via SIMBOX. Another important initiative to grow new As part of giving the best service revenue streams is Telkomsel’s to Very High Value Customers international A2P SMS service, which and VVIPs, Telkomsel launched involves securing off net and on ROAMazing, an international net traffic leakage and managing roaming package offering broad domestic as well as international coverage in 178 countries, big channels in order to maximize A2P quotas, and seamless convenience SMS monetization. in using this service.

International Roaming Telkomsel also gave best service In its international roaming business, and support for customers travelling Telkomsel continued to transform its to Saudi Arabia on Hajj so they can Roaming Business revenue structure stay connected to their family in from Pay per Use to Package Indonesia. Telkomsel’s superior revenue model, by offering attractive roaming service was achieved in During 2019, Telkomsel continued and affordable Roaming Packages. collaboration with Roaming Partners to migrate existing customers to 4G all over the world, through its by replacing old SIM card with USIM At the end of 2019, Telkomsel membership in Bridge Alliance. and moving 2G/3G device users to launched an aggressive new 4G devices. Customers can choose Roaming Package called ROAMax to do the replacement at GraPARi which enables customers to and MyGraPARI, thematic events or continue using Telkomsel’s service in simply by accessing the Telkomsel Asia and Australia without changing website to get the USIM delivered to to a local SIM Card. ROAMax also their home. offers travelers going to destinations such as Europe, the United States or Canada superior price and value

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ANNUAL REPORT 2019 DIGITAL SERVICES

About Digital Services digit growth, mBanking is central to Going forward, we will continue to providing Indonesians with broader scale up our Digital Services business Digital Services has been the key access to financial transactions from more rapidly through innovations driver of Telkomsel’s transformation their mobile phones. and partnerships while also to become a Digital Telco Company. developing the digital ecosystem Years of continuous improvements We rapidly built our Big Data in parallel, as a key foundation to and investments have enabled us to business (MSIGHT) by supporting become a Digital Telco Company provide advanced Digital Services institutions with data-driven and to build a Digital Indonesia. in Indonesia, in alignment with our actionable insights from our Telco mission of accelerating innovation Big Data. As an enabler of Digital Digital Advertising – Far and advancing the nation. Our Transformation for our clients, Beyond SMS Messaging Digital Services portfolio consists of we provide lead generation, telco Digital Advertising, Mobile Banking, credit scoring, market insights, Big Data & API, the Internet of and an API platform to 40+ Things, and Digital Lifestyle products enterprises of financial institutions, and services. e-commerce unicorns, system integrators, logistic providers We have continued to build and the Indonesian government. In keeping with the dynamic our digital advertising business, One of our growth drivers, Credit acceleration of the digital advertising DigiAds (formerly Telkomsel Digital Scoring API, has assisted more industry, we rebranded Telkomsel Advertising), into a digital media than Rp 250+ billion personal loan Digital Advertising as DigiAds in early powerhouse of the Indonesian disbursements from 20+ financial 2019. This unique new branding Advertising Industry. DigiAds revenue institutions with 3 million API hits. strengthens our positioning as a grew by 60% in 2019 from an already We assist key e-commerce players provider of comprehensive digital significant base in 2018 as we in understanding their market advertising solutions across a wide continued to create custom digital positioning as well as with customer variety of channels, one that can marketing solutions by enhancing activation to both increase the meet advertiser demand for high our premium advertising inventory spending of their existing customers quality digital advertising consulting, with Big Data analytics. Those and acquire new productive data analytics, media solutions and solutions have delivered highly customers. reporting. personalized audience targeting, providing higher ROI to advertisers We have continuously expanded DigiAds provides the widest range and better relevance to the target our footprint in the Internet of of mobile advertising solutions audiences. Things (IoT) business, going for advertisers in Indonesia. These beyond connectivity with analytics solutions are delivered by combining Our mobile banking business, and solutions to capture bigger our advertising capabilities in mBanking, has enabled more than opportunities in the vast industrial Messaging, Programmatic Display 90 financial institutions to provide landscape. We have also doubled IoT and Video, Contextual and Location mobile banking services via SMS, business from our industrial-focused Based Advertising (LBA) and Rewards USSD, IVR, and mobile apps. portfolio: Smart Connectivity, and Mobile Couponing, and using Continuing to achieve solid double- Fleet Management, Remote Tank Monitoring, Asset Tracking, and Managed Networks.

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our unique insights developed offers are especially successful in These alliances with respected from sophisticated data analytics driving retail footfall and restaurant innovators of the international of more than 171 million Telkomsel traffic. adtech industry have empowered subscribers. us to provide world class digital The continuous improvement of advertising solutions for our We partner with leading international our digital advertising products and multinational and Indonesian technology providers across the services led to significant growth clients. industry to provide the highest in the number of advertisers we quality services, leveraging our vast partnered with. As a result, we 3. Building the Foundation of inventory and analytic methods. successfully served more than 500 Digital Marketing Activation for This combination of highly accurate client brands in 2019. SMEs audience targeting, widest reach and the most extensive digital Key Highlights telco inventory in Indonesia allows 1. Expanding our Display and advertisers to better target their Video Inventory ads to the right audience for higher as we continue to add value returns. beyond messaging, we significantly increased our display Demand for performance-based and video ad space inventory small to Medium Enterprises advertising is increasing, especially on Telkomsel applications and (SMEs) are key to Indonesia’s within the online services vertical. platforms including MyTelkomsel, continued economic To satisfy this demands, DigiAds MAXstream, Langit Musik and development. Through MyAds, delivers performance-based Dunia Games. Through our our self-service digital marketing campaigns including Cost per Lead recently announced strategic activation platform, we have (CPL), Cost per Installation (CPI), partnership with Kompas enabled 20,000 SMEs nationwide and Cost per Acquisition (CPA). We Gramedia Group (KGM), we further to begin advertising to increase further enhance those campaigns broadened our available video their revenues. We continuously by enabling advertisers to reward inventory by including access to improve our MyAds services to their respondents with free data KGM’s Tribunnews and BolaSport help local businesses to grow at (our FRIDA offering), SMS and Voice portals. their own pace, guiding them to packages (our GITA offering), in take control of this important way order to increase response rates 2. Strengthened Programmatic of driving their business growth and boost consumer engagement. Ecosystem through our cost-effective, easy- DigiAds also provides a high- in alignment with our vision of to-learn advertising platform, performance Mobile Coupon Service becoming the programmatic which allows them to manage which combines several of these powerhouse of Indonesia, spending wisely while delivering elements to send tightly targeted we strengthened Indonesia’s solid results. mobile coupons with offers that are programmatic advertising redeemable at point of sale. These ecosystem by partnering with global industry leaders MOAT, The Trade Desk (TTD), and Pubmatic.

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ANNUAL REPORT 2019 4. ROLi Revamp of professionals including more partnerships with the top state- than 50 C-level executives from owned Banks to acquire new users more than 100 major companies and to increase transactions. In in Indonesia. The event combined alignment with the banks’ missions an extensive product exhibition to digitize banking transaction and a much-reported sharing behavior, we created a loyalty session by distinguished speaker program which significantly boosted Piyush Gupta, the CEO of mobile banking traffic. DBS Group, who has led the We continued to enhance the digital transformation of the Big Data & API – value provided to both the Singapore-based regional banking Digitalizing Enterprises users and advertisers on our powerhouse and was voted best new, reward-based mobile app CEO in Asia-Pacific by Asian ROLi. We added more advanced Banker. features, built a more intuitive interface, and added broader and Mobile Banking – higher quality content including Accelerating Branchless sports and news feeds. RoLi now Our Big Data & API business, Banking has more than 1 million active MSIGHT, has helped enable users who can earn up to 600 MB enterprises' digital transformation Data by viewing advertisements through valuable and actionable when they use the ROLi app. insights. By investing and leveraging our key assets: data generated from 5. Telkomsel NextWave Our Mobile Banking (mBanking) serving dominant market share in supported Government in Indonesia and extensive capabilities transforming traditional banking in telco services, we help our clients to digital banking behavior by to make faster and more precise partnering with 90 financial decisions. institutions in Indonesia. mBanking helps customers to access and use MSIGHT provides Big Data & API multiple banking services anytime services to 40+ clients from financial in March 2019, the Telkomsel and anywhere. These services are institutions, e-commerce unicorns, NextWave event showcased available through mBanking mobile system integrators, logistic providers, our newest digital businesses apps, SMS and USSD channels. and Indonesian government. We are to our current and prospective In 2019, mBanking once again committed to compliance in all legal clients and business partners. The recorded double-digit YoY revenue aspects to ensure that customers’ portfolio on display included our growth by completing 2 billion personal data remains protected. offerings in Digital Advertising, transactions for over 10 million Big Data & Analytics, Mobile monthly active users. Users Banking and the Internet of were able to conduct financial Things and attracted hundreds transactions with great convenience and high reliability over our broad network coverage across Indonesia. We continued to expand our

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Key Highlights competition. Subsequently, we offers authentication, fraud, risk, 1. Telco Credit Scoring activated this understanding to personalization, and lifestyle Telco Credit Score is a service increase the existing customers profile use cases. Through designed specifically for financial spend and acquire new ones. We DigiHUB, local developers can institutions or loan providers to also continued to collaborate with seamlessly utilize Telkomsel API help assess the credit-worthiness government officials by providing using self-service approach. level of applicants based on our mobile positioning data for their telco demographic and the purposes drawing up official Internet of Things – behavior. We scaled up our telco statistics. Smart Connection for credit scoring business in 2019, Smart Industries serving 11 financial institutions 3. Telco API with 3.5 million API hits. We msiGHT leverages Telkomsel maintained close collaborations SMS and charging capability with legitimate partners supervised through API SMS and the DCB by OJK and other government (Direct Carrier Billing) business. institutions to provide advanced API SMS enables our clients to services in the financial industry. send multiple SMS seamlessly and As such, we played a role in automatically without the need to ensuring that all individuals have manually log in to an application access to affordable financial or platform. While API DCB (Direct products and services regardless Carrier Billing) allows Telkomsel About IoT of personal net worth, with the customers to pay for online items Telkomsel IoT (Internet of Things) noble purpose of improving the from various marketplaces using connects devices, machines and overall quality of their lives. their mobile device through an objects containing embedded airtime deduction process. We technology to the Internet, turning 2. Competitive Insights achieved 50 million API SMS hits them into ‘intelligent’ assets that our insight dashboard visualizes and delivered more than Rp 20 interact with external environments. data derived from key data points, billion of charging requests via We empower enterprises to gather thus enabling clients to see DCB API. real-time data and analytics from snapshots of their performance connected devices through our against their competitors in the 4. API marketplace: DigiHUB reliable, secure, and advanced IoT market at any time. We partnered We aim to further grow our API solutions so that enterprises can with key players in the online business through our new API then make data-driven decisions. In sector such as ecommerce, marketplace, DigiHUB, which 2019 we connected 1 million devices fintech, and ride hailing to help offers a better interface and across 250+ enterprises, and we them understand their market user experience. Our clients continuously pushed to go beyond positioning compared to the can easily purchase API services connectivity to develop analytics and anytime and anywhere via automation capabilities. DigiHUB web portal using one of many available payment methods. We also introduced our new API Insight service which

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ANNUAL REPORT 2019 With 5G technology on the horizon 2. In utility sector, PLN has begun IoT Control Center IoT solutions will become more widely implementing IoT in its powerful than ever, connecting core configuration to monitor at much higher speed. Ultra-low performance and scale up latency 5G will deliver seamless operations. We have now user experience for cases such as partnered with ICON+, PLN’s connected cars, edge computing, subsidiary, to provide NB-IoT process automation and many solutions for electrical substations IoT Control center is a cloud-based others. Through our intelligent monitoring and smart meter solution that enables enterprises to IoT solutions, we play a key role systems. automate the management of their in building the Digital Enterprise connected devices. In addition to Ecosystem and become a key 3. In the government sector, connectivity management, these enabler of the ‘Making Indonesia 4.0’ more smart city plans are being powerful control center automation Government initiative. implemented. The Gorontalo and tracking features (LOCI) provide regional government (Pemda) asset visibility and safety, thus and Makassar city government helping to ensure the reliability of pioneered the implementation of connected services, device usage our FleetSight solution for various optimization and predictable costs. fleet management services as part We further enhanced the IoT Control of their Smart City initiatives. Center, so that it can manage 4G connectivity and NB-IoT devices on 4. Lastly in the industrial sector, a single platform. we released several Industrial- focused solutions: Intelligent Expansion in Key Sectors IoT Managed Service Liquid Tank Monitoring (INTANK), 1. The financial sector continued Connectivity Asset Monitoring Solution (Asset to dominate our IoT business Performance Management) with various connected devices and customized product line available such as ATM, EDC, monitoring. These solutions and branchless banking. have been implemented in major Our primary customer Bank companies such as MitraTel, Rakyat Indonesia (BRI) has fully IoT Managed Service is our corporate Pertamina, Patraniaga, and the utilized and implemented IoT connectivity service offering up to National Railway (PT KAI). to drive efficiency and improve 99.5% uptime guarantee through productivity for their operation various channels including leased and business expansion. line, multicellular, and VSAT. IoT Managed Service decreases the likelihood of downtime, simplifies network setup and ensures that your

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business stays connected 24/7. We FleetSight was further enhanced INTANK launched various enhancements for with 2 new features, namely DSM IoT Managed Service Connectivity: and ADAS. These features were • Bonding Technology, which developed to increase safety on the ensures reliable connectivity using road. multiple SIM cards. • Driver Status Monitoring System • L2VPN, which supports extensive (DSM) is an artificial intelligence Intelligent Tank Monitoring connectivity for maximum system that provides warnings System (INTANK) is an end-to- productivity in the case of abnormal driver end IoT intelligent solution with • SDWAN to operate all corporate behavior. the capacity to track and monitor WANs simultaneously, and • Advance Driving Monitoring liquid inventories, particularly oil, • Failover to diversify your Assistance (ADAS) is used to chemical, and water. Armed with connectivity. detect the situation in front of robust and efficient technology cars in real-time and provide early and sensors, INTANK brings FleetSight warnings such as lane departure visibility and enhances operational warning and collision warning to efficiency in liquid inventories reduce driving risks. resulting in 50% energy cost reduction. Backed by international TOMS certification for its devices and sensors, INTANK has been adopted Fleetsight is an end-to-end Fleet by multiple enterprises for numerous Management solution that provides commercial projects. insight and professional services to help enterprises improve Asset Performance productivity, safety and efficiencies. Management Our focus is vehicle telematics, which utilizes sensor devices embedded in the vehicle and fleet Telkomsel Order Management management platform. FleetSight System (TOMS) is an adjacent helps enterprises increase efficiency, solution for enterprise fleet improve productivity and minimize order management. With TOMS, the risks associated with vehicle enterprises can now track and investment. manage their operational fleet A new addition to our business to increase its efficiency and solution line-up is Asset decrease downtime. TOMS can be Performance Management. It works implemented as a standalone system in real-time to monitor and analyze or combined with our FleetSight assets indoor, outdoor, and in transit. Solution. The solution allows enterprises to easily monitor the quality, availability, and security of their assets anytime and anywhere.

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ANNUAL REPORT 2019 Digital Lifestyle other DCB carriers and owned an additional 6 original local content published Game Titles. An eSports titles and more than 80 local series Over the past several years, Platform was launched in March on MAXstream. Telkomsel has been undergoing 2019 to support and engage with a transformation into a Digital gamer communities by enabling Meanwhile in Music, Telkomsel Company, staying at the forefront them to hold e-sport competitions. focused on improving user of digital products and services that Our eSport events cater to all gamer experience on our RBT platform meet customers’ preferences and segments from Amateur, Campus Langit Musik, and partnering with enabling us to be “Indonesia Digital to Professional Teams, making us OTT apps to provide Direct carrier Service Provider of the Year”. This The Biggest eSports player in the Billing payment. Langit Musik also was done through continuous scale- region. Meanwhile we published acquired more than 700 song up, innovation and collaborative our first ever e-game, ShellFire collections from 500 indie musicians partnerships in Digital Services with both nationwide and globally. by holding workshops and concerts. local as well as global digital content Subsequently in October 2019 we providers towards enhancing the released our 2nd game, Lord of Estera Having won the ‘The Most Innovative Digital Ecosystem in Indonesia. which was also released globally, Voice Solution from Telecom Asia strengthening the Dunia Games and Digital Lifestyle from Asia A new partnership with Google brand as a premier Game Publishing Communication Awards’ in 2018, the enables Telkomsel customers to Player in the region. Company has continued to deliver purchase games and applications innovative new mobile Value Added in Google Playstore using prepaid Telkomsel strengthened its Services to expand its digital lifestyle credits or alternatively, through positioning in the Video Streaming product base. Among others, we postpaid billing. This arrangement industry by enriching its content added credit scoring capabilities is convenient for customers given and platform for mass market. To to the Paket Darurat (Emergency the low credit card penetration do so, we joined with partners Package) Service, which allows users rate in Indonesia. Telkomsel also to offer a wide variety of content to stay connected when their credit customized packages to meet and customized packages for balance runs out, with the aim of customers’ digital lifestyle needs in video data plans, as well as targeting new subscribers who are Video, Game, Music and other Digital premium subscriptions to several potentially highly profitable. Value Added Services, supported OTT Services. The content from by top local and global content MAXstream, which can be accessed GAMES partners. via Maxstream’s app as well as Telkomsel acts as payment solution OTT partners’ platforms in form provider, enabling Direct Carrier In 2019, Telkomsel maintained its of live broadcast and video-on- Billing (DCB) access so that domination of Indonesia’s gaming demand, includes blockbuster subscribers can purchase digital ecosystem through Dunia Games movies, Hollywood series, sports content (game items, game top-ups with a wide range of e-Sports programs, reality shows and drama or premium game subscription) on tournaments, game vouchers, series, as well as Free To Air TV and application stores including Google expanded payment choices involving international channels from HBO Playstore, Samsung Galaxy Store, as GO, HOOQ, Vidio and Viu. In 2019, Telkomsel also continued to develop the local movie industry by releasing

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well as on the Dunia Games page. created by users on the platform content providers such as Viu, Vidio, As of the end of 2019, more than and participation of more than iflix, HOOQ and KlikFilm to enrich its 100 game publishers and developers 70k players. content and platform. MAXstream have connected to the Dunia Games also collaborated with HBO to be DCB. Game Publishing the first mobile partner to launch In September 2019, Dunia Games HBO GO on the wholesale markets. Dunia Games Platform Telkomsel published its second This partnership allows MAXstream Building on its success in 2018, game, Lord of Estera, an Action to broadcast HBO live channels as Dunia Games has also allowed other Battle Card RPG genre taking place well as a number of iconic TV series. subscribers from other telcos to in a Multiplayer Online Battle Arena charge purchases to their postpaid (MOBA) format. Players are able to To further enhance user experience, bills or prepaid credits. This has make in-app purchase of diamonds Maxstream added new features significantly increased Dunia Games’ (Lord of Estera in-game currency) such as OTT Playout, which enables MAU, making it the Number 1 to buy resources that can improve customers to play OTT content from Games Portal in Indonesia. their gaming experience. This game MAXstream (HOOQ, Vidio, iflix, HBO is available on Google Play Store and GO), as well as a web version for Dunia Games' innovations range App Store. the Video Player so that users can from providing game vouchers stream movies from the website and through various Indonesian For Dunia Games first published watch them on a big screen (TV). telecommuniation providers, game, ShellFire, a national enhancing the experience for tournament was held from August MAXstream also enriched its users (when reading, watching – November 2019. A total of 560 platform with original content. In and purchasing Game Vouchers), teams joined from all over Indonesia, 2019, working in collaboration with releasing Reseller tools for the competing for prizes worth the local movie industry, it produced salesforce to boost transactions, Rp 1 billion. more than 70 original episodes and the eSport Open Platform, under 10 titles, of which 6 titles were where users can create their own VIDEO launched during the year. Tournament Page and Bracket. MAXstream acts as a one stop video portal where users can stream best MUSIC As a result, Dunia Games traffic quality videos covering a wide range Telkomsel continuously enhances grew significantly in 2019. As a of services: live streaming events, Langit Musik to give the best leading Game Media, Dunia Games AVOD, TVOD, and SVOD, which experience for customers. With its has published more than 100K consists of OTT video content new interface and new features articles (averaging 100 articles per bundled with attractive Telkomsel including seamless login, search week), and produced more than internet data packages. recommendation, new players 1,100 videos with 20 million views and more than 7 million local and (averaging 8 videos per week), more In 2019, MAXstream strengthened its international songs catalogue, than 1,100 videos produced (20 positioning in the video streaming Langit Musik continue to please million views) averaging 8 videos per industry by partnering with video music lovers and support the music week. For the eSport platform, more industry in Indonesia. The average than 1.6K tournaments have been session duration on Langit Music in 2019 was 28 minutes, higher than other music apps.

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ANNUAL REPORT 2019 In the second half of 2019, Langit DIGITAL VAS Musik worked with other platforms In the second In 2019, Telkomsel collaborated such as Dunia Games, Duniaku, half of 2019, with app-based healthcare services Wifi ID, Kumparan, Indihome providers, accelerating equal and MyTelkomsel to put a widget Langit Musik distribution of easy and convenient on their platforms and provide access to healthcare services for music streaming service to their worked the public and further developing subscribers. Langit Musik also held the Telkomsel digital ecosystem. numerous music events including with other This inter-industry collaboration is ‘PagelaRans’, held with the RANS expected to become a sustainable label in several cities (Padang, Bogor, platforms digital-based partnership which Banjarmasin, Manado, Malang, utilizes technology for broader Bandung, Tangerang). Telkomsel such as social impact. also held the Langit Musik Festival in 9 big cities (Cirebon, Palembang, Dunia Games, Telkomsel has also delivered Paket Medan, Surabaya, Jogjakarta, Bali, Darurat Service for almost 2 years Ambon, Makassar and Banjarmasin) Duniaku, Wifi (since February 2018). Currently, where it reached in the local Paket Darurat is available through musicians to educate them on how ID, Kumparan, the MyTelkomsel app, SMS and UMB. to make money in the digital music In 2019 Telkomsel enhanced Paket business. These events attracted Indihome and Darurat Service with credit scoring more than 500 local musicians with features which aim to gain new and more than 700 song collections. MyTelkomsel highly profitable subscribers.

Furthermore, Telkomsel improved to put a widget SHAPING THE FUTURE OF its Ring Back Tone (RBT) platform, DIGITAL INDONESIA collaborating with 80 radio stations on their to promote RBT via differentiated platforms and LinkAja – E-Money for the UMB. Additionally, Telkomsel Indonesian masses nationwide extended a soft bundling package provide music for RBT to HVC. RBT can be purchased through Langit Musik streaming application. To promote RBT, Telkomsel held a program with service prizes for customers who activated RBT when calling other RBT to their customers or who replied when offered RBT recommendations. subscribers. To fulfil our vision of realizing financial inclusion and creating a cashless society in Indonesia, in 2019 we merged our mobile financial service flagship, TCASH, with several other SOE e-money

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services to create LinkAja. Supported by.U is designed to appeal to Gen-Z be accessed through a live chat by the SOEs, LinkAja is empowered users, who are known for being feature on the by.U digital app, on to provide much more distinctive empowered, creative, always-on, the official website www.byu.id, as use cases for all Indonesians, and who prioritize their freedom. well as through by.U’s Instagram and becoming the leading choice of These characteristics are reflected Facebook channels. e-money nationwide. in by.U’s main values which include digitalization, personalization and Open Innovation with transparency. TINC & TMI

Adopting a pizza concept, by.U customers choose their quota size (S/M/L) as the base, and then on top of it they can add their toppings such as their YouTube quota, Instagram quota, voice quota, and As the Digital Ecosystem in by.U – the first fully-digital so on. All the packages and toppings Indonesia has continued to flourish, telco service in Indonesia are available 24 hours without usage we initiated TINC, a collaborative limitations nationwide. innovation center where startups can collaborate with our business Recognizing that Gen-Z users do not incubation team. TINC stands like to wait and want to get things for Telkomsel Innovation Center. done quickly, by.U aims to let them Its role is to spot new business directly manage their accounts opportunities from the earliest over the app, including monitor stage. Through TINC, we can better their usage and handle their own engage with Indonesia’s vast Digital customer service, with zero human Ecosystem plus incubate and interaction needed. accelerate business innovations in this experimental environment.

Our focus in 2019 was to strengthen the IoT Low-Power Wide-Area Capturing the opportunity to expand (LPWA) ecosystem using NB-IOT our youth market share through technology. We released a NB-IOT savvy digital behavior, in October we SDK toolkit, held hackathons, and launched by.U, the first fully-digital extended our NB-IOT technology to prepaid wireless telecommunication the university IOT labs we had set up service in Indonesia. Through the in 2018 on certain campuses. by. app, users enjoy a fully digital end-to-end experience for all However for users who need help, their telecommunication needs from by.U’s digital-based products choosing a number to getting a SIM and services are supported by an card, topping-up balance and quota, integrated help center which can and payment.

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ANNUAL REPORT 2019 During May-July, we held roadshows At TMI, we are building tomorrow's in 4 cities to engage local startup future by giving entrepreneurs communities, ending with a unparalleled access to Telkomsel's hackathon to attract developer ecosystem, unlocking the talent as the prerequisite for the distribution and expertise necessary incubation stage. The events to stay ahead of the curve. produced 4 innovators who were ready for incubation in TINC batch 3, Network Technology which focused on Industrial IOT. Leadership Following its success as the first Telkomsel completed the 800 mobile operator in Indonesia to MHz and 900 MHz frequency conduct 5G trials, which took place bands refarming as required during the Asian Games 2018, by the Decree of the Minister of Telkomsel has been mandated by Launched in early 2019, Telkomsel Communication and Information the Ministry of Communication and Mitra Inovasi or TMI is the venture Technology Number 29 of 2019 Information Technology to conduct arm of Telkomsel. TMI's main focus which requires Cellular Mobile 5G trials focusing on the industrial is to scout for new technologies Network operators to rearrange sector. In 2019 we held 5G trials in or services that can give Telkomsel current non-contiguous 800 MHz Batam and Jakarta, demonstrating a head start to better serve our and 900 MHz radio frequency bands. our commitment to being the customers, in order to lead and The refarming process began in foremost operator in supporting shape the industry. Through TMI, February and was completed in April, the ‘Making Indonesia 4.0’ we seek and invest in promising covering 42 clusters in 34 provinces government initiative. As it catalyzes entrepreneurial companies that nationwide. Thanks to this spectrum collaboration among stakeholders are tackling some of today's most refarming, the Telkomsel frequency for Industry 4.0, Telkomsel is paving significant technological challenges band, which was non-contiguous at the road for the implementation for consumers as well as enterprise 800 - 900 MHz, is now contiguous of 5G as the key enabler towards customers. In less than a year, at 15 MHz. As a result, Telkomsel can achieving Indonesia’s vision of this fund has invested in FinAccel provide better customer experience becoming one of world’s biggest (Kredivo), PrivyID, and Roambee. with enhanced internet speed and economies in 2030. LTE coverage.

In 2019 we held 5G trials in Batam and Jakarta, demonstrating our commitment to being the foremost operator in supporting the ‘Making Indonesia 4.0’ government initiative.

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SALES BUSINESS STRATEGY In 2019, we continued to In 2019, we continued to implement implement our three main our three main sales strategies to Increase Data Share, Digital Touch sales strategies to Increase Point Experience and Winning Enterprise Business and Digital Data Share, improve digital Lifestyle. However, the way in which these sales strategies were Touch Point Experience and implemented were adjusted in line with corporate objectives and WIn Enterprise Business and market conditions, for a total of 8 sales programs as follows. Digital Lifestyle.

1. Increase Data Share b. Strengthen Youth & Data promoters and referral codes a. Retain and Expand HVC (High through Retail territory for a comprehensive training Value Customers) through management program, have helped increase Single View of Customer We consider the youth segment the number of Telkomsel’s new Approach to be the future driver of youth subscribers. HVC or High Value Customers economic growth in Indonesia. refer to customers who Therefore, Telkomsel launched c. Manage territory with more generate the largest revenue SMILES (Sales Millennials Ideas), granular approach based on contribution in Telkomsel overall an agile project to win youth its characteristics revenue. To provide the best market share by addressing what With customer experience service to HVC customers, matters most to youth in both as the main focus, Telkomsel service differentiation was rural and urban areas. continued to listen to the voice created by ensuring that of customers to understand HVC get priority handling at The solutions proposed, their different needs and Customer Touch Points (CTP) which ranged from Data wants in each territory, and ranging from service queues to package comparisons to digital we therefore maintained our complaint handling. cluster-based product offers approach while also applying a more granular approach to managing sales operations and programs by territory.

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ANNUAL REPORT 2019 at the same time, we improved territory management by maintaining a strong relationship Aktivitas with our strategic business di Embarkasi partners and re-clustering to support faster sales program execution. Aktivitas as a result, the proportion of di GraPARI active outlets which sell our Saudi & Maktab products (starter packs, Data package and DLS packages) has increased compared to to ensure availability and sales also cooperated with local and last year. Through extensive performance achievement. At national device stores, in order cooperation with modern retail the end of 2019, Telkomsel’s to provide added value for Hajj stores, we also scaled up the digital products were available and Umrah pilgrims. expansion of our integrated on several online as well as sales channels. Finally, to offline to online channels c. Improve Digital Touch Point cement our position as a market including prominent online Experience and Service leader, we also focused on cities marketplaces, ride hailing Transformation with high competition levels services, online travel sites and 2019 is the year of by establishing special direct DigiPos as a “hero” mobile Point transformation in terms of sales teams, attractive reseller of Sales, while Mobile GraPARI service to customers by programs and various customer evolved to become a one stop introducing more varied Digital engagement events. As a result, solution for digital products & Services for self-service. we gained significant market entertainment. Simple transactions include share in those cities. information and requests that b. Next Gen Partnership to Push can be accessed by customers 2. Digital Touch Point Digital Products & Services through MyTelkomsel (apps Experience Communication is a primary and web), My GraPARI IVR and a. Empower and Utilize Sales need for travelers. Looking at Virtual Assistant. Digital Channels the annual increase in Hajj and Going forward, the biggest Umrah each year, Telkomsel To improve services through revenue contribution is therefore focused on Hajj and digital touch points, Telkomsel forecasted to come mainly Umrah pilgrims in 2019 by has launched a chatbot-based from digital channels. We have working with travel agents, service called Telkomsel Virtual therefore focused on expanding banks and the Ministry of Assistant that is embedded our digital channels, along with Religious Affairs. Telkomsel on the social media platforms clear policies, programs and Facebook Messenger, LINE, daily performance monitoring Telegram and also the MyTelkomsel application.

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3. Winning Enterprise Business place in November 2019 in 8 In order to make it easier for & Digital Lifestyle (DLS) big cities. Free Fire national customers to reach customer a. Market expansion on SME and tournament attracted 8,600 service assistance, Telkomsel Enterprise Business with B2B teams to compete, ending with provides 188 Call Center services Solutions a Grand Final Tournament on which are available for 24-hours for The B2B segment focused 28 September 2019 at Tennis all customers. Call Center services on expanding the SME Indoor Senayan Jakarta, one of are located in 4 cities; Medan, and Enterprise market. In the biggest game competitions Bandung, Surabaya & Makassar. the SME segment, we are in Jakarta. In addition, customers can access building Indonesia’s largest E-care assistance via Email as well as SME ecosystem through our Telkomsel’s Facebook, Twitter and digital platform, 99% Usahaku, Instagram accounts. which had its soft launch on September 9, 2019. By joining Through these self-service channels, 99% Usahaku, SME will be able customers can easily get information to optimize their procurement, or communicate requests using expand the market, access to MyTelkomsel, MyGraPARI and IVR financing, increase productivity as well as Virtual Assistants. Virtual and get education opportunities. Assistant services can be accessed CHANNEL MANAGEMENT via Facebook, Telegram, LINE, in the Enterprise, Corporate Telkomsel.com and MyTelkomsel. and Government segment, Direct Channel Management Telkomsel is positioned as Continuing last year’s success In addition, to make it easier for an orchestrator of digital in providing the best service to customers to access GraPARI technology and enterprise customers, Telkomsel continued services, Telkomsel has provided digital solutions starting to improve service quality in all online reservation services through from Basic Connectivity and Customer Touch Points. Overall, MyTelkomsel so that customers can progressing to Advanced customer service channels were split decide when they want to come to Connectivity, Cloud/SaaS, into two, namely assisted channels GraPARI and immediately see the Security, Analytics and IoT. (GraPARI, Call Centers, E-care) and Customer Service Staff. unaided / independent services b. Win Youth through Digital (MyGraPARI, MyTelkomsel, IVR, Supported by efforts to continuously Products and Experience Virtual Assistants). As of December improve MyGraPARI services, in 2019 in order to win the youth 2019, Telkom managed ISO 9001: Telkomsel increased the number segment, we created new 2015 certified 80 GraPARI, 341 of MyGraPARI to 118 in all Regions events and experiences where GraPARI Partners and 5 GraPARI & Regions by focusing on card people can experience our new International operating in Mecca, replacement services, kartuHalo bill digital products, namely HBO Medina, Hong Kong & Taiwan. payments, repayment content, and GO streaming on MaxStream service package activation. and Free Fire e-games on Dunia Games. The HBO Go on MaxStream launch event took

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ANNUAL REPORT 2019 CHANNEL MANAGEMENT PARTNER Telkomsel continues to encourage generate revenue. A good Cluster Telkomsel continues to work the agility and creativity of each Health Index score reflects strong in partnerships with numerous employee by providing relevant retail fundamentals not only at the partners from different industries to new skillsets related to facing city level but also in village outlets. maintain its products and services transformation. Moreover, Telkomsel To maintain good scores, several availability nationwide. In 2019, fosters a corporate culture that programs have been created to build Telkomsel increased its number of enables employees to be able to up retail fundamentals, win market modern partners while optimizing its fully demonstrate their individual share and reach the target audience. partnership with traditional partners. abilities and encourage employees to continue to innovate both inside To maintain the mass market New partners that have established and outside the company. segment, various programs were partnerships with Telkomsel include created such as the OMG Race KAHA, Yukk, Paytren and Ayopop. Telkomsel realizes that customer Medan, Fun Festival Batam and Fun Telkomsel’s main objective is to behavior has changed significantly. Festival Belitung. HVC Diamond further increase market penetration Nowadays customers tend to use Telkomsel customers were also of Data and digital products as well the internet more to access social invited to talk to Telkomsel’s as boosting Data packages renewals. media, stream music and videos, BOD. Telkomsel also continued In addition, during certain seasons and play online games. Responding strengthening the fundamentals to Telkomsel also provided special to changes in customer behavior, support healthy growth and revenue, offers to customers such as RAFI, Telkomsel continues to develop while still focusing on the youth Harbolnas, MAXSTREAM GALA, HBO partnerships with content providers segment by ensuring the availability Go, and many more. and game publishers, including of Telkomsel products in schools holding various digital activities. and campuses. Other than that, AREA SALES ACTIVITIES Telkomsel Sumatera also pushed In 2019, Telkomsel in Sumatera 4G SDN growth and nurtured Telkomsel recognizes that the has authorized each region to digital ecosystem market growth industry is in the middle of many determine their respective sales in collaboration with Amazon Web changes and disruptions. Facing strategies based on local market Service, with the goal of eventually these challenges, Telkomsel conditions. Nevertheless, its focus enabling SMEs to join the global is currently in the process of was to build the digital ecosystem by market. transforming into a Digital Telco segmenting customers and offering Company. This process is certainly differentiated Digital Services not easy, but it is a challenge that accordingly. This segmentation must be faced. was established to ensure effective targeting of the products sold. Telkomsel believe that going digital is not necessarily about technology, Telkomsel also focused on but more importantly about improving its Cluster Health Index, the mindset of each employee. which measures how well each cluster manages its retail activities and convert those activities to

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A similar strategy was applied to In addition to providing the best To maintain Telkomsel’s dominance the Jabotabek West Java area, service, Telkomsel Area Java-Bali in the , , Sulawesi, and where Telkomsel strengthened continued to ensure best network Kalimantan (Pamasuka), we focused fundamentals through a availability throughout the country, on expanding existing Digital customer-centric approach even in 3T (Frontier, Outermost, Ecosystems and retaining potential as the primary key to increase and Least Developed) areas. During customers (HVC) in those areas. incremental revenue. Telkomsel emergency conditions for example Telkomsel aggressively implemented created, executed, and evaluated when disasters occur, Telkomsel programs to protect the market, programs based on customer always strives to ensure the improved healthy growth of renewal segmentation and preferences to availability of its telecommunications packages and existing subscriber maintain customer length of stay networks through COMBAT revenue, held digital campaigns and (LOS) and uplift ARPU. In terms of (Compact Mobile BTS) and mobile offered Digital Services to maintain the youth segment, Telkomsel held backup power. This is in line with its Telkomsel’s position in clusters various activities such as student commitment to open up access to where it dominates. performances, a Mobile Legend telecommunications and information competition, a Youth Festival and so in border areas, relocated areas, and To support the strategy, several forth as part of its commitment to maritime routes in Indonesia while “topping” packages were offered, strengthening its approach for the supporting the acceleration of the namely in the form of Big Quota youth segment. Indonesian Broadband Plan for the Short Validity (BQSV) Data and 2014-2019 period. physical vouchers. The HVC program provides rewards and loyalty to In terms of developing digital customers both in the form of direct ecosystems, the Java Bali Telkomsel prizes and sweepstakes with very Area launched the Dunia Games attractive and varied prizes. Caster Academy to produce professional video game casters in To push Digital Services, Telkomsel the Java Bali Area. In the first batch, Pamasuka area launched an ten participants were selected from interactive campaign to build all applicants to take part in a series awareness and customer experience of trainings ranging from how to use for digital products and services. software and casting compilation The introduction of digital products software to creating unique images and services was done by using and characters as casters. digital groups / communities as our On National Customer day, digital agents. Telkomsel continued Telkomsel Jabotabek West Java ongoing evaluation of existing digital sales held a parade on Car Free Day programs such as Games, Music and (CFD) Area and participated in the Video and continued to disseminate Jakarta Fair Kemayoran with many new products for Digital Services. products and services. At the end of 2019, OMG! was launched as the main product to generate revenue for Telkomsel. Various events were held to socialize this program to customers.

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ANNUAL REPORT 2019 Overview Consumer-B2C MyTelkomsel, USSD menu, MaxStream and internal Customer 2019 saw a continuation of Several key strategic programs were Care systems, which now use Telkomsel’s digital IT transformation, executed in 2019 to better serve B2C Digital Core as their backbone. which started in 2018 with the customers and support business The result is an omni-channel implementation of a digital transformation. These included the experience for customers, core as the foundation for this digital core to support customer whereby customers can activate transformation. This digital core care and a Next-Gen Recharge the same set of product menus made it possible to upscale platform as the main platform for on all channels. This can also consumer experience on Telkomsel indirect sales via dealers and outlets. speed up the integration of channels/applications and has also external channels such as transformed the billing and charging 1. Digital Core LinkAja, e-commerce sites, and journey, besides setting up the The Digital Core, which has been so forth on Telkomsel’s platform, foundation for Big Data and Business implemented since 2018, features thus enabling various activities Intelligence capabilities. a set of strategic IT capabilities including checking customer that are key to improved customer profiles and activating products. Throughout 2019, Telkomsel experience. This was being done Besides delivering technology continued the IT digital by enabling single Enterprise enhancements, the Digital Core transformation journey to enable Product Catalogs to cover product also supports Agile development critical capabilities in 4 of its configurations, single Enterprise methodology thus enables operations streams, namely Service Bus and API Gateways as Telkomsel to create product faster Consumer-B2C, Enterprise- the main middleware and gateway for improved Time-to-Market. This B2B, Digital and Entertainment for all customer traffic requests, is critical in order for Telkomsel to Ecosystem, and Corporate as well as enabling Digital Order respond to the changing dynamics Transformation/Digitization, while Management to digitally process of the business. also strengthening our cyber customer requests such as security capabilities. product activation requests. 2. Next Generation Recharge The Next-Generation Recharge In 2019, the Digital Core was platform, which is powered by expanded to 16 channels/ the Digital Core, was developed applications including

Throughout 2019, Telkomsel continued the IT digital transformation journey to enable critical capabilities in 4 of its operations streams, namely Consumer-B2C, Enterprise- B2B, Digital and Entertainment Ecosystem, and Corporate Transformation/DigitizatioN.

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to support new sales business management. To enable this, all operations with the ticketing models. Using this platform, AM and corporate account data is process during the aftersales Sales teams can better control stored in SAFORA. phase. EMS enables Telkomsel to the inventory, cash on hand and capture and monitor customer price of prepaid vouchers; enrich Sales opportunities will then requests, information and customer and channel profiling; be managed by applying CPQ complaints towards improving the and enable real-time campaigns (Configure Price Quote) software. after sales journey for better SLA. related to recharge events. CPQ will help to digitally manage Technology-wise, this platform the quotation including discount Digital and also supports open API, enabling pricing. CPQ will also allow the Entertainment Ecosystem rapid on-boarding for external sales team to see all of Telkomsel digital channels. corporate products and easily In accordance with Telkomsel’s manage the quotation lifecycle for vision to be a trusted, world class Enterprise - B2B customers. provider of digital lifestyle services, Once the contract is finalized, Telkomsel consistently made Enterprise/B2B has been one of the the documents will be managed enhancements to Digital Lifestyle key focus areas in 2019. To improve by the LDMS (Legal Document platforms, including MaxStream and enterprise customer experience and Management System). This Dunia Games. We also introduced their overall journey, IT Telkomsel is system simplifies and digitizes the API Marketplace to leverage equipping businesses with integrated the customer contract process, Telkomsel services within the end-to-end systems and tools. For functioning as an electronic external ecosystem. 2019, the key deliverables comprised contract system for new contracts the following platforms. as well as contract renewals. 1. MaxStream After launching MaxStream in 1. SAFORA-CPQ-LDMS 2. DSC 2018 to support high-profile SAFORA (Salesforce Automation IT has also launched DSC (Digital events such as the World Cup and system) was designed and built Smart Care) for corporate Asian Games, in 2019 Telkomsel to make it easier to manage customers. This is a one stop enhanced MaxStream by enabling sales plans all the way to self-service portal that empowers OTT playout through iflix and customer accounts. It features enterprise customers (especially its HBO Group. MaxStream, which an enterprise sales dashboard PIC) to manage their phone/Data is also equipped with advertising that offers information on Sales usage, employee user accounts, capabilities, has become a a new Plan and Account Manager billing, and payments. revenue source for Telkomsel. (AM) Performance as well as project (leads/ opportunities) 3. EMS IT also launched EMS (Enterprise Management System) to help both Telkomsel’s internal and partner

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ANNUAL REPORT 2019 2. Dunia Games Corporate On Dunia Games, the web portal Transformation and In 2019, underwent a major revamp Digitization Telkomsel also and now has the capability to let customers run e-Sport Throughout 2019, several INTRODUCED tournaments. Other new features internal digitization projects were include vouchers on the Games implemented to streamline and MOANA, a one- Store and the ability to process improve business processes. In more payment methods. Finance area, two initiatives to stop employee digitalize documents have been 3. API Marketplace deployed to handle financial self-service Telkomsel’s API (Application documents (including contracts Programming Interface) and invoices). DocuTrack focuses platform Marketplace consists of a web on converting physical documents portal containing a list of API or and saving them as digital media, that enables services that can be accessed and while also enabling users to track used by mobile application or web the circulation of documents users to developer. In line with the rising based on predefined workflows. trends of API usage in the IT world, Another platform called DINA is also access various Telkomsel has been introducing being deployed to create Digital its API Marketplace to external Documents based on templates, corporate parties (including developers with digital signatures that are legally and partners) who can then get acceptable. functions. authorization to securely access Telkomsel services (i.e. sending In 2019, Telkomsel also introduced SMS using external applications, MOANA, a one-stop employee activate products, etc.). This self-service platform that enables will open up new business users to access various corporate opportunities and drive innovation functions including HCM services, for Telkomsel, as well as building IT services, GA and Corporate a community of developers as Communication. This includes GPS- potential partners. based attendance, electronic memos for internal units, booking meeting rooms, IT ticketing, and chat bots.

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Cyber Security Awards Fortification In 2019, IT Telkomsel received 3 While digitization and open awards: ecosystems have created many opportunities, this has also 1. A Cyber Security Awareness Award introduced security threats. To in August 2019 from BSSN (Badan counter this, security measures need Siber Dan Sandi Negara). to be kept up to date to ensure that Telkomsel can operate in a safe and secure manner that protects customer data and privacy from unauthorized access.

This has been a key focus of Telkomsel in running several 2. A Red Hat Open Source high-profile security programs Innovation APAC Award in throughout 2019. These programs October 2019 from Red Hat include initiatives to improve internal employee awareness on properly managing confidential information, deploying security devices and applications (e.g. modernization and expansion of firewalls, advanced persistent threats, anti DDOS protection expansion, server anti- virus, continuous security testing, 3. The Top Digital Implementation and so on) to prevent security 2019 award in the Telecom incidents, while also making sure sector #Level Star 5 award at the that proper security monitoring IT Works Top Digital Awards in and fast remediation can be November 2019, alongside other implemented through the Telkomsel awards such as: SOC (Security Operation Center). - Top Leader in Digital Implementation 2019 - Top Wireless Internet Provider 2019 - Top Data Package 2019

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ANNUAL REPORT 2019 During 2019, Network’s strategy and high capacity terrestrial solutions In collaboration with the Marketing programs focused on transforming for the rest in collaboration with our and Sales Directorates we also capabilities to deliver extensive parent company, Telkom Indonesia. started to segment Data service data leadership, digital network, based on service demand for micro and operational excellence. In As a result, the performance clusters within cities. line with these objectives digital of our LTE network has been technology innovation and Data consistently ranked among the Telkomsel also has launched leadership were established as key best in Indonesia by independent virtualized network infrastructure strategic initiatives. In addition, the network performance measurement into the live network as part of successfully implemented following applications, affirmed our LTE its journey into 5G readiness. The Network programs: LTE Leadership, leadership in this country. Virtual Network will transform our Virtualized Network Infrastructures, Network operating model, establish Digital Network Capabilities, Our principal strategy to deliver new way of working, and capture the Operation Excellence, and Cost best customer data experience full benefits of agile networks. Cap- Transformation. has been focused on customer and-Grow is the business model experience and established a robust used to transform the network from Telkomsel continues to display network, which being accomplished physical to virtualized infrastructure. network superiority as a key through a network optimization Through this model, we “cap” the experience differentiator. Through program called True Customer- Legacy network solution and “grow” LTE Leadership program, we Oriented Experience, whereby cities new capabilities using state-of- continued to leverage our spectrum were prioritized and segmented the-art Virtual Network technology. assets and harness advanced to boost optimal performance. The transformation started by technologies to lead the industry. This included the delivery of exceptional connection with 23,000 new LTE network elements that We continued to leverage our have covered 95% of the population throughout Indonesia. We are also spectrum assets and harness thrilled that our LTE Long Range Coverage Solution was awarded Best advanced technologies to lead Wireless Broadband Solution in the World Broadband Forum 2019. the INDUSTRY, WHICH INCLUDED THE DELIVERY OF EXCEPTIONAL We continued investing in cutting edge technology to strengthen connection with 23,000 new LTE our LTE infrastructure, deploying advanced LTE technology and network elements that have capabilities such as Massive MIMO, 256 QAM, and 8T8R. To enable the covered 95% of the population technology, we fiberized more than half of all priority sites and deployed throughout Indonesia.

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rolling out Virtual Evolve Packet As part of our smart investment In addition, Telkomsel actively Core (VEPC) in the West and East strategy, we pushed to apply partnered with the government to Regions to strengthen the Data the latest technology including deploy data networks in remote services. In addition, we are also automation to improve the and border areas through the in the process of building Network effectiveness and agility of our USO (Universal Service Obligation) Function Virtualization (NFV) product network infrastructure and program. By the end of 2019, we portfolios to anticipate growing operations. We continued to have built 941 2G and 4G USO sites. demand as customers shift away modernize our BTS infrastructure to from traditional network services support Multimode SDR (Software It is also worth noting that Telkomsel and devices. Defined Radio) and enable 5G is committed to maximizing the readiness. We also modernized our infrastructure of the Ring We enhanced our Digital Network antenna infrastructure to support project, which is the government’s Capability by widely deploying NB- multiband, as well as electrical flagship broadband development IOT within the ten biggest cities in control technology. infrastructure project. The Palapa Indonesia to ensure that Telkomsel Ring consists of fiber optic cables is competitive as far as digital We met our goal of delivering linking East Indonesia (Palapa Ring network readiness is concerned. We effective and efficient infrastructure Timur) to Central Indonesia (Palapa believe that this will enable the IoT solutions in remote areas by Ring Tengah), and West Indonesia ecosystem to thrive and accelerate providing smart custom towers, (Palapa Ring Barat). In addition, digital innovation, thus create more which successfully accelerated Telkomsel also supported additional business use case opportunities for the tower deployment process. 251 new USO sites around Indonesia our Digital Business. Telkomsel now owns around 18,000 which, together with the Telkomsel towers, expanding our coverage and Merah Putih program, supports As the technology leader in the connectivity. digital access in remote and border country, we anticipate that the high areas outside of the USO program. connectivity and low latency of 5G Supporting Digital By the end of 2019, 238 Merah will greatly enable Industry 4.0 and Access in Indonesia Putih sites have been deployed create new business opportunities. all over Indonesia using green We therefore continued to trial Our support for the government’s technology solutions. 5G technology in Batam, aiming accelerated infrastructure to create and enhance use cases development programs can be seen that are aligned with growing in the form of our special program industrial digitization such as for LTE connectivity in public autonomous drones for smart air infrastructure such as toll roads, patrols, high speed throughput for highways, railways, commuter lines, smart surveillance, and augmented and mass rapid transport (MRT), reality support for maintenance and which are priority infrastructure repair situations. projects for the Indonesian government. This program also reflects our commitment to building connectivity and digital access solutions in Indonesia.

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ANNUAL REPORT 2019 In alignment with the corporate strategy to become a Digital This shift in strategic and Telecommunication Company, business models requires the Human Capital Management (HCM) plays a pivotal role in shaping HCM to attract and develop the company culture and guiding employees towards attaining the the right leadership and company’s objectives. Key enablers of successful transformation include talent, fully engage the building future-fit capabilities and establishing a strong digital culture organization around the across the organization. strategy, and build a culture As Telkomsel embarks on a transformation journey to become that supports change. a customer-centric organization, new operating models have been implemented with regard to its supporting this new organization. Centric to Customer-Centric, a process, people, and technology, The third was the development paradigm shift which has driven the and several initiatives are of a high performance culture creation of new operating models. currently underway that focus on to support the organization and To support this, HCM has had “Accelerating High-Performance people transformation. All of this to create a new organization Organization and Drive New will enable us to be more agile, structure which now emphasizes Capabilities for Healthy Growth & technology-focused and innovative the ownership and accountability Profitability”. This shift in strategic towards achieving the Company’s of each market segment served. In and business models requires HCM business goals. this way, the Telkomsel organization to attract and develop the right can move more dynamically to leadership and talent, fully engage Shaping a Customer- suit the needs of each very diverse the organization around the strategy, Centric Organization consumer segment; it has become and build a culture that supports an organism — a living organism that change. As the market becomes increasingly is continuously evolving through complex and fluid, Telkomsel interactions with customers and its During 2019, HCM focused on 3 needs to be able to respond and efforts to continuously provide a areas of improvement. The first adapt rapidly in line with the better user experience. was to transform the organization changing market. Thus, Telkomsel's and operating model to become organization has had to change This new organization structure was more customer-centric. The completely, not merely moving launched in phases in line with the second was to upskill people and from structure A to structure B, but release of new operating models, develop the capabilities needed for fundamentally changing in order to accommodate the change in business paradigm from Product-

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started from B2B and continuing To become a high-performing UX Academy with B2C Marketing, B2C Sales, organization, HCM used two Continuing to refer to the Corporate Finance and HCM. Most recently, approaches: Build and Buy. In an Strategic Plan, Telkomsel not only we launched a new organization effort to Build Future-Fit Capabilities, needs good data management structure for the CEO’s Office, HCM implemented integrated but also good UX design in order Planning and Transformation, development programs under a to effectively present its big Network and IT. series of 'Transformational Expert data analysis to Telkomsel’s data Development' (TED) programs. customers. Furthermore, HCM also tried a Meanwhile, to achieve quick wins different approach for fulfilling in business competition, in some Good UX Design can be described positions in the new organization cases HCM also hired external talent as a 'sweet spot' where user needs, structure, especially for Senior to accelerate the learning process business goals, and the ability of Management. For senior and more quickly fulfill necessary technology teams (engineers / management, positions employees capabilities. developers) to create products and were invited to apply directly to services that consumers need all these vacancies. The Board of Data Science Academy come together. The resulting user Directors will then decide based Referring to the Corporate Strategic experience should be easy to use on the employee’s aspirations, Plan, Telkomsel needs to cultivate and provide a pleasant experience job history, performance history data management and utilization for users (Technology to Human and suitability of the employee’s capabilities in order to support the Interaction). competence. All of this aims to transformation into a Digitelco create transparency in fulfilling (Digital Telecommunication Based on this, the UX Academy positions while taking into Company). Data is a key resource was the second TED program consideration employees’ aspirations in the digital industry, and a critical to open. Employees responded in the process. enabler in Telkomsel's efforts to enthusiastically with 19% or 1,056 better understand consumers. registrants signing up for a program. Building and Acquiring The Data Science Academy (DSA), Those employees who passed Future-Fit Capabilities which was the first TED program selection rounds will participate in academy held, successfully attracted a series of programs for 6 months: Going beyond organizational around 24% of all employees, with bootcamp, full-stack development, structure, the success of the 1,296 registered participants. Those intensive coaching and hands-on transformation is determined who passed multiple selection projects, earning certification as by the employees who run the rounds were eligible to participate in a UX Researcher / UX Designer / business. Therefore, as soon as the a series of programs over a 6-month UI Designer Expert at the end of new organization went live, HCM period. Bootcamp, full-stack the program. simultaneously held a variety of development, intensive coaching programs that encourage capabilities and hands-on projects, ending fulfillment as well as an innovation with certification as a Data Scientist culture in company. Expert at the end of the program.

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ANNUAL REPORT 2019 Data Science Academy InnoXtion Transformational Expert Development Festival (TED Fest)

Transformational Expert 200 Telkomsel employees, 70 One of the projects launched Development Festival (TED college students and 30 local in 2019 that is related to the Fest) communities who came to see implementation of new ways of TED Fest is a new capability and listen to various speakers from working was the “Home LTE Project”. development program in the form of various backgrounds. Open recruitment for this project conferences, seminars and sharing was launched in October 2019, with sessions aimed at Telkomsel Area, DigitalX, OJI, InnoXtion 7 roles open to staff and middle Regional and Branch employees as In addition to building capabilities management employees only. At well as the general public (students through various academies under the end of the registration period, and communities). This is part of the TED program, HCM also HCM received 595 applications who an employee development series organizes programs to introduce were tested. The 10 employees or conducted by Telkomsel where new ways of working that are more 2% of applicants who passed were leaders / CEOs of startup and digital agile, dynamic, collaborative, and chosen to become the project team. companies share their stories on innovative through DigitalX and OJI HCM also opened an innovation Digital Business and discuss what (On the Job Innovating) programs. lab called InnoXtion to help an competencies are needed in this These programs encourage innovation culture of innovation emerging industry. employees to go the extra mile thrive in Telkomsel. This lab is open and try new, more experimental all year round to any employee who The first TED Fest was held in ways of working for more impactful wants to work on innovations for Surabaya on 4-5 December 2019, results. Until the end of 2019, 617 Telkomsel. HCM also brought in with “We The People 4.0” as its employees from various Directorates coaches to assist with employees’ theme. It was attended by around and regions, from Sumatera to innovation projects until they Papua, have been involved in the DigitalX and OJI programs.

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can successfully enter the new Develop A High Performance During business incubation stage. Once a Culture 2018-2019, year, on Telkomsel’s anniversary, Besides the fact that Organizational employees receive awards for the transformation requires shifting employees best projects. During 2018-2019, people's capabilities, it also employees submitted 164 ideas for requires a supporting system or submitted innovation, showing that Telkomsel working environment that can drive has succeeded in building a culture employee behavior to continue 164 ideas for of innovation so that each individual working beyond expectations. is eager to think innovatively. Hence HCM develops high- innovation, performance culture through 3 Recruitment Channel aspects: Performance & Incentives showing that Strategy through Telkomsel Scheme Revamp, Work Life Balance Next Gen and Experienced Hire Activation, and HR Technology Telkomsel has The need to deliver Future-Fit Enhancement. Capabilities was done not only succeeded through internal build programs Revamp of Performance but also through external talent Calibration, Performance in building a hires. Since its launch last year, the Measurement System & Telkomsel Next Gen Program has Incentive Scheme culture of become a recruitment channel for “If we can’t measure it, then we can’t talent in their final year of university, manage it”. This is why standardized innovation who are put through a Bootcamp key performance indicators (KPI) program where they are given an have been created for each position, so that each individual project target to achieve. complete with its scoring rules in order to set clear and objective individual is Telkomsel also hires external measurements for employee eager to think talent with expertise in future-fit performance. capabilities to join the company innovatively. and boost performance. There Starting in the second half of were 20 new external hires for 2019, HCM has implemented a future capabilities in 2019 who were new performance measurement distributed between several levels system (New PMS) that is more and units. These hires come from fair, objective and standardized. various companies with diverse In the New PMS, performance experiences, and were hired by results reflects actual employee Telkomsel after they successfully passed a series of tests.

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ANNUAL REPORT 2019 performance without needing to worked. Employees were permitted be manually harmonized, and it also to flexibly clock in between 7 a.m In 2019, includes a quantitative weighting until 9 a.m and clock out between Telkomsel process. 4 p.m until 6 p.m, so long as they recorded at least 8 working hours. was awarded Specifically for senior management This flexible arrangement allows HCM applied a performance employees to arrange their schedule the TOP 10 calibration process in order to more conveniently and helps them distinguish the relative performance achieve work-life balance. ASIA’S Best of employees in level senior management. Employees’ HCM is also in charge of employee Employer performance will be rated on recreatrional activities called a bell curve to create “forced “IBO” (Iman, Budaya, Olahraga Brands 2019 rankings” and subsequently – Faith, Culture, Sport). Through classified into the category of Poor IBO, Telkomsel strives to provide award as Performers, Average Performers, recreational facilities that touch on and Top Performers based on their religion, culture and sport towards well as the performance rating. enjoying good quality work-life balance, which in turn will increase Indonesia Work Life Balance Activation employee engagement and improve through Flexible Working employee productivity. Best Employer Hours and IBO Practices High-performance culture requires With regard to religion and Brand Award employees to enjoy a balance spirituality, HCM has established of work and personal life. HCM a task force to facilitate Majelis 2019 from therefore trialed flexible working Ta’lim Telkomsel (MTT) with two hours starting in November 2019, tasks. The first is to facilitate Employer which was conducted for 3 months organization form changes, form Branding until January 2020 with the purpose “Yayasan - Foundation” to become of giving employees more flexible “Perkumpulan - Association”. Institute. work arrangements that enable them The second task is to collaborate to accommodate personal needs. with Telkomsel and help guide the development of company This arrangement was subject to infrastructure to support the number of rules, in compliance with spiritual development of employees, Indonesian labor laws in Indonesia especially Moslems. regarding the number of hours

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In accordance with HRC’s application. This ChatBot offers commitment and the success in 24 hour HCM help desk digital In October managing IBO, Singtel conducted assistance with easy-to-use, 2019, HCM a benchmarking study regarding interactive services. Employee can Telkomsel IBO management ask the Chatbot information on HCM launched on November 13, 2019 at the services anywhere and anytime. Telkomsel Smart Office Building. Furthermore, HCM carried out an employee A total of 20 Singtel employees continuous improvement with the came as representatives of the launch of 3 new features in MOANA: service Singtel Recreation Club (SRC) to a “STPD Online” (Surat Tugas see how IBO is managed and try Perjalanan Dinas Online – Online information some activities such as sports and Business Travel Benefit) module, traditional dances. Personal Data module, and Leave intranet Management module. HR Technology Enhancement microsite through Digital Platform Employees can now process their To develop a high performance business travel needs apply and called culture and support productive check their annual leave, and update behavior, technology enablers their personal and family data simply “LOVINA”, that need to be integrated into the and easily through MOANA. performance and reward system In the near future, HCM will contains as well as work life arrangements. launch E-Recruitment to broaden Consequently, HCM stays up-to- recruitment channels for Telkomsel policies and date with the latest HR technology by making it easier for applicants to in order to provide employees with see job opportunities in Telkomsel. guidelines services and solutions in an efficient This is in line with HCM’s objective and convenient manner. of improving its services for better for using employee experiences. HCM digital In October 2019, HCM launched an employee service information Human Capital applications intranet microsite called “LOVINA”, Management Awards that contains policies and guidelines and Acknowledgement and services. for using HCM digital applications and services. This site aims to In 2019, Telkomsel was awarded facilitate employees in accessing the TOP 10 ASIA’S Best Employer HCM policies on the internal Brands 2019 award as well as the company network. Indonesia Best Employer Brand Award 2019 from Employer Branding At the same time, HCM also Institute. These awards reflect its launched a ChatBot feature achievements in HCM. inside the MOANA (Mobile Office Application and Automation)

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ANNUAL REPORT 2019 In 2019, supported by synergies with 3. Transforming the Company’s the transition to the Entity. For the its parent companies, the Company operating model to sustain Home LTE business, a HomeLTE maintained its position as the market growth, i.e. changing the way Business Committee Team has been leader in the telco industry, even as Telkomsel operates to a lean formed by Telkom and Telkomsel to its success has led to ever greater and agile mindset to support conduct trials and assess the pilot challenges and competition. Telkom accelerated growth. project and product viability. Group and Singtel as the parent companies continued to commit There were more than 25 synergy In B2B Segment, Telkomsel and resources towards developing and initiatives in 2019, which could be Telkom Enterprise initiated a New strengthening Telkomsel’s Legacy broadly categorized as follows: Go-to-Market Alignment (New business as well as its digital mobile 1. Synergies related to Customer GTMA) program to drive acquisition service. These synergies have Experience of new customers and generate especially benefited Telkomsel’s 2. Synergies related to Network more revenue from the Government digital mobile development Infrastructure and State Owned Enterprise by integrating them within the 3. Synergies related to Digital segment by offering Corporate parent companies’ larger digital Business Business Solutions and digital ecosystems, thus furthering the 4. Synergies related to Business advertising. Company’s transformation. Support As part of prioritizing synergy Overall these synergies focused on Synergies Related to between SOEs, Telkomsel initiated 3 aspects: Customer Experience synergy with PT Pegadaian in 1. Strengthening the Core Growth the form of joint promos and Market, by maintaining leadership In 2019, Telkomsel and Telkom utilization of products and services, in the core business through Group collaborated to improve internal provision and affiliate flawless execution of ongoing customer experience through a pilot communication programs for initiatives to grow in line with project that integrates fixed and agency applications. market expectations. cellular networks to deliver Seamless 2. Creating Expansive Offers to Go Digital Experience (SEADEX) and On July 10, 2019, Telkomsel Beyond, which involves building HomeLTE. The SEADEX pilot project launched the DmobXLab specifically new engines of growth by supports end-to-end improvement to test devices and applications. intensifying digital businesses in of customer journey including the In the future, device testing will order to surpass the growth rate commercialization process and accelerate device approvals as well of the Indonesian cellular market and deliver excellent customer experience.

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as the Go-to-Market process. These Radio Network reengineering to and provides communication and initiatives to improve consumer improve customer experience at digital solutions for employees and experience, test devices and 1,147 locations, improve BTS power students at Telkom University. optimize devices are part of the TAU usage nationally, and improve (Telkomsel Android Unity) program, management of its Network Telkomsel also synergized with which educates consumers to buy Technical Service Agreement. highly promising digital startups network friendly devices so that from Telkom’s venture arm, MDI users can enjoy a good network Telkomsel and Telkom Group Ventures, to help fill industry gaps experience while reducing network also collaborated through the and develop Telkom Group’s “Next expenses overall. Collaborative Network Optimization Be (Next Billion Ecosystem). These Project (CNOP) where Order startups included Kredivo, PrevyID The Superior Performance Management and Service Level and Roambee as promising new Assessment Criteria (KPKU) is a Management was enhanced, in companies. management and control system order to ensure adequate support for SOE performance that has for Telkomsel’s network plan, design Synergies related to been established by the Ministry of and preparations for the Ramadhan Business Support SOE, which aims to improve the and Idul Fitri period (RAFI) as well as effectiveness and capability of SOEs the Christmas and New Year period Supporting the development of as a whole. The goal is to capture (NARU). Big Data, a program called Telkom overall organizational performance Group Insight Exchange has from process to results. The assessor Synergies Related to been implemented at Telkomsel. team provides feedback and gives Digital Business This program focuses on proper the SOE in question an opportunity governance of data exchange to improve its practices in order During the year, Telkomsel leveraged between Telkomsel and Telkom to achieve the best performance. synergies with Telkom Group and Group, which must now be Telkomsel supports TELKOM other stakeholders to drive the approved by the Telkom Group Digi Group’s results in the areas of growth of the Digital Business, Counsel. Existing use cases have Customer Focus and Business by expanding the LinkAja parking been used to support the SEADEX Results. ecosystem to include Telkom and HomeLTE program. payment facilities. LinkAja has also Synergies Related to been implemented at the Telkomsel Other synergies related to business Network Infrastructure Multimedia Building as well as support include synergy programs Telkomsel Smart Offices, and is were carried out by Telkomsel Synergies related to network ready for mass usage. with its managed companies infrastructure primarily focused on to accelerate their human leveraging Telkom’s infrastructure In line with its commitment to resources readiness in support to drive cost efficiencies through developing the Indonesian education of transformation into a digital economies of scale, while enhancing system, Telkomsel collaborated company. For example, a Design revenue, quality and preparing with Telkom University to develop Sharing program was held to Telkomsel’s infrastructure for Digital the Digital Campus Ecosystem. The develop new capabilities such as Business. By synergizing with Telkom Digital Campus Ecosystem supports Data Scientist, UI / UX and Customer Group's operational experiences, innovation and knowledge sharing, Experience capabilities. Telkomsel was able to speed up its

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ANNUAL REPORT 2019 Our commitment to the Transparency implementation of Good Corporate This principle shall be carried In order to Governance (GCG) in every aspect out in the effort to present fair build a strong of the business represents our access to all information about compliance with the Company Law the Company’s financial and GCG structure No. 40 of 2007 and certain aspects operational performance. of the United States Sarbanes-Oxley within the Act (SOA), with which all subsidiaries Accountability of PT Telekomunikasi Indonesia Tbk Management and staff at all levels organization, (TELKOM) are required to comply are required to develop high following its share listing on New accountability in every action we are firmly York Stock Exchange (NYSE). taken and in maintaining a fruitful relationship with the shareholders bound by five At the same time, the GCG and stakeholders as well as with implementation is also an regard to regulatory compliance. principles important element that will ensure the Company’s continuous Responsibility which serve competitiveness, enable us to stay This principle requires the ahead of the industry and maintain commitment of all elements in as the pillars our market leadership position, the organization to show their and guide us in creating long-term integrity and responsibility in of our GCG value for both shareholders and the decision-making process, in stakeholders. In order to build a defending the Company’s and implementation. strong GCG structure within the stakeholders’ interests and assets organization, we are firmly bound and risk management to ensure by five principles which serve as the business continuity. pillars of our GCG implementation. The five principles are: Independence We exercise our independence as an organization with high integrity by ensuring that all management is free from conflict of interest and/or the influence of other party.

Fairness We carry out this principle to ensure that all shareholders and stakeholders receive equal treatment, including fair opportunities for the employees to earn career promotions, training and education, and access to information.

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CODE OF CONDUCT INDEPENDENCE OF BOARD OF COMMISSIONERS AND BOARD OF DIRECTORS Telkomsel has adopted a code of conduct in accordance with The Company has a firm policy regarding the independence and potential highest standards of values and conflict of interest of its Boards, which requires all members of Board of ethical conducts. The code applies Commissioners and Board of Directors to report any positions they hold at to all employees representing the other institutions that may potentially result in a conflict of interest or violate Company and it is envisioned to existing laws and regulations. In a situation where one of our Directors is govern them in executing their exposed to a conflict of interest, he or she, in accordance with the Articles of duties. Everyone associated with Association, shall be represented by another Board member. the Telkomsel code of conduct should comply with prevailing laws The Articles of Association further states that the Board of Commissioners and regulations and act in the best may take over responsibility from the Board of Directors in the case that interest of the Company. all members of the Board of Directors have a conflict of interest. To further The code influences how employees ensure independence, our policy regulates that all members of the Board of think about actions and what Directors and Board of Commissioners must not possess familial relationships they should or should not do in with any other Board member. safeguarding the Company’s assets, revenues and monetary adjustment THE BOARD OF COMMISSIONERS beyond the Company's policies. It is the personal responsibility of each The Board of Commissioners comprises six members of whom one performs employee to adhere to applicable as the President Commissioner. Telkom as the majority shareholder is standards. entitled to nominate four Commissioners and Singapore Telecom Mobile Pte Ltd reserves the right to nominate two Commissioners. Based on GENERAL MEETING OF the shareholders resolution, the composition of Telkomsel’s Board of SHAREHOLDERS Commissioners effective from July 16, 2018 to May 31, 2019 was as follows:

As stated in the Articles of Telkom Representatives Association, the General Meeting of Shareholders (GMS) serves as the President Commissioner Alex Janangkih Sinaga highest forum that is granted the Commissioner Harry Mozarta Zen authority other than that granted to Commissioner Mohamad Irfan either the Board of Directors or the Commissioner Yose Rizal Board of Commissioners, including taking the decisions regarding vital and strategic corporate actions and Singtel Representatives approving the reports of the Board of Commissioners and the Directors. Commissioner Paul Dominic O’Sullivan In the GMS, the Board of Directors Commissioner Yuen Kuan Moon releases the Company Annual Report and the financial report, determines the allocation of the Company Net Profit and appoints the independent auditors.

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ANNUAL REPORT 2019 Based on the Annual General Meeting of Shareholders, the composition of Telkomsel’s Board of Commissioners effective from May 31, 2019 was as follows:

Telkom Representatives

President Commissioner Ririek Adriansyah Commissioner Harry Mozarta Zen Commissioner Mohamad Irfan Commissioner Yose Rizal

Singtel Representatives

Commissioner Paul Dominic O’Sullivan Commissioner Yuen Kuan Moon

Based on the shareholders resolution, the composition of Telkomsel’s Board of Commissioners effective from November 25, 2019 was as follows:

Telkom Representatives

President Commissioner Ririek Adriansyah Commissioner Harry Mozarta Zen Commissioner Nanang Pamuji Mugasejati Commissioner Yose Rizal

Singtel Representatives

Commissioner Paul Dominic O’Sullivan Commissioner Yuen Kuan Moon

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The Board of Commissioners is responsible for: • Supervising the Board of Directors’ management of the Company; • Supervising the implementation of the Company’s long-term business strategy; • Overseeing the effectiveness of the good corporate governance practices in the Company, including risk management and internal controls; • Monitoring the performance of the business; • Providing direction, recommendations and guidance for the Board of Directors in managing the Company’s business.

MEETINGS OF THE BOARD OF COMMISSIONERS IN 2019

The Articles of Association states that the Board of Commissioners holds a meeting at least once every three months, or whenever necessary as requested by any of the Board members or shareholder(s) who represent at least 1/10 of the total issued shares of the Company with valid voting rights. The Board of Commissioners also holds joint meetings with the Board of Directors as part of performing its supervisory function.

BOARD OF COMMISSIONERS

Name Position Meeting Attendance Alex J. Sinaga President Commissioner 1 of 1 Ririek Adriansyah President Commissioner 2 of 2 Harry Mozarta Zen Commissioner 3 of 3 Yose Rizal Commissioner 3 of 3 Paul Dominic Commissioner 3 of 3 O’Sullivan Yuen Kuan Moon Commissioner 3 of 3 Mohamad Irfan Commissioner 1 of 3 Nanang Pamuji Commissioner 0 of 0 Mugasejati

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ANNUAL REPORT 2019 BOARD OF DIRECTORS THE AUDIT COMMITTEE The Audit Committee assists the Name Position Meeting Attendance Board of Commissioners in fulfilling its oversight responsibilities for Ririek Adriansyah President Director 1 of 1 the financial reporting process, Emma Sri Martini President Director 2 of 2 internal control process, internal Sukardi Silalahi Director of Sales 1 of 1 and external audit process and risk management process. In performing Ririn Widaryani Director of Sales 2 of 2 its duties, the Audit Committee Heri Supriadi Director of Finance 3 of 3 shall ensure an effective working Bob Apriawan Director of Network 1 of 1 relationship with the Board of Directors, Managements, Internal Iskriono Windiarjanto Director of Network 2 of 2 Auditors and External Auditors. The Irfan Ahadi Director of Human Capital 3 of 3 Audit Committee shall meet at least Management four (4) times a year, and meetings Edward Ying Director of Planning and 3 of 3 must be attended by at least two Transformation members of the Audit Committee, including one member nominated Montgomery Hong Director of IT 1 of 1 by Telkom and one member Bharat Alva Director of IT 2 of 2 nominated by Singapore Telecom Alistair Johnston Director of Marketing 1 of 1 Mobile Pte Ltd. The Audit Committee members shall comprise at least Goh Hui Min Director of Marketing 2 of 2 3 (three) members. The members are appointed by the Board of In addition, there were 2 additional strategic workshops in 2019 attended by Commissioners, and at least one of selected members of the Board of Commissioners. the members shall have competency in accounting and/or auditing. COMMITTEES UNDER THE BOARD OF COMMISSIONERS

Based on the Circular Resolution of The Board of Commissioners is charged with a supervisory role in a general the Board of Commissioners of the and/or a specific manner in accordance with the Articles of Association Company on the Appointment of and to provide advice to Board of Directors. In performing its supervisory Committee Members of the Board function, the Board of Commissioners is assisted by three Committees. The of Commissioners, the members of Committees are: the Audit Committee from August 1, • Audit Committee 2018 are: • Remuneration Committee • CAPEX, Financing and Management Process (CFMP) Committee

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• Harry Mozarta Zen as Chairman 3 members and the members are appointed by the Board of Commissioners. • Paul Dominic O’Sullivan as a Pursuant to its Charter, the Remuneration Committee shall meet at least 1 Member (once) a year and the meeting shall be attended by at least 2 (two) members. • Mohamad Irfan as a Member • Agus Suryono as a Member Based on the Circular Resolution of the Board of Commissioners of the Company on the Appointment of Committee Members of the Board of Based on the Circular Resolution of Commissioners, the members of the Remuneration Committee during the the Board of Commissioners of the 2019 financial year were: Company on the Appointment of • Yuen Kuan Moon as Chairman Committee Members of the Board of • Harry Mozarta Zen as a Member Commissioners, the members of the • Yose Rizal as a Member Audit Committee from November • Irfan Ahadi as a Member 25, 2019 are: • Harry Mozarta Zen as Chairman In 2019, there were a total of 2 Remuneration Committee meetings. • Paul Dominic O’Sullivan as a Member THE CAPEX, FINANCING AND MANAGEMENT PROCESS (CFMP) • Nanang Pamuji Mugasejati as a COMMITTEE Member The Capex, Financing and Management Process (CFMP) Committee shall • Agus Suryono as a Member assist the Board of Commissioners in fulfilling its oversight responsibilities regarding the Capex, financing, and management processes of the Company. The Audit Committee holds The CFMP Committee will provide the Board of Commissioners from time meetings on regular basis with the to time with its findings and recommendations. For an effective review and Internal Audit Group to discuss understanding of the Capex and operational processes, the CFMP Committee findings from the audit process. In will need to have ongoing interaction with the management, which can be 2019, there were a total of 7 Audit the members of the Board of Directors. Committee meetings. a. The CFMP Committee shall review, but are not limited to, the following: THE REMUNERATION COMMITTEE b. The Capex planning and management process. The Remuneration Committee is c. The financing policies and plans of the Company. established to assist the Board of Commissioners in ensuring that the The CFMP Committee reports periodically to the Board of Commissioners. Its remuneration policy and scheme reports contains a summary of the CFMP Committee’s activities, findings and that is being implemented or will be recommendations. The CFMP Committee shall comprise at least 3 (three) implemented in the Company fairly members. At least one member of the CFMP Committee is a member of the rewards the Board of Directors and Board of Commissioners nominated by Telkom and at least one member employees, attracts talent and has of the CFMP Committee is a member of the Board of Commissioners competitive value, in order to ensure that the Company has competent human resources. The Remuneration Committee shall comprise of at least

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ANNUAL REPORT 2019 nominated by Singtel. One other member of the CFMP Committee shall be a representative of the Company in charge for Capex planning/monitoring and financing. The CFMP Committee holds regular meetings, structured via a timetable, agendas and minutes of meeting. The frequency of meetings will depend on the CFMP Committee’s objectives and scope of activities.

Based on the Circular Resolution of the Board of Commissioners of the Company on the Appointment of Committee Members of the Board of Commissioners, the members of the Capex, Financing & Management Process (CFMP) Committee for 2019 are: • Harry Mozarta Zen as Chairman • Yuen Kuan Moon as a Member • Heri Supriadi as Member • Era Kamali Nasution as a Member

In 2019, there were a total of 5 CFMP Committee meetings.

THE BOARD OF DIRECTORS

The Board of Directors consists of eight members and is led by the President Director. PT Telkom as the majority shareholder is entitled to nominate five Directors and Singapore Telecom Mobile Pte Ltd reserves right to nominate three Directors. Based on the Shareholders Resolution, the composition of Telkomsel’s Board of Directors effective from May 1, 2019, was as follows:

Telkom Representatives

President Director Ririek Adriansyah Director of Sales Sukardi Silalahi Director of Finance Heri Supriadi Director of Human Capital Management Irfan Ahadi Director of Network Bob Apriawan

Singtel Representatives

Director of Planning and Transformation Edward Ying Siew Heng Director of IT Alva Bharat Director of Marketing Alistair Johnston

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Based on the Annual General Meeting Shareholders’ Resolution, the The Board of Directors is composition of Telkomsel’s Board of Directors effective from May 31, 2019, responsible for: was as follows: • Maintaining the daily business of the Company; Telkom Representatives • Formulating Telkomsel’s Business Plan and Strategy; President Director Emma Sri Martini • Preparing the Annual budget; Director of Sales Ririn Widaryani • Preparing the Annual Report to Director of Finance Heri Supriadi Shareholders; • Ensuring that the business is run Director of Human Capital Management Irfan Ahadi effectively to give value to the Director of Network Iskriono Windiarjanto shareholders and stakeholders; • Representing the Company in any legal cases. Singtel Representatives

Director of Planning and Transformation Edward Ying Siew Heng MEETINGS OF THE BOARD OF DIRECTORS IN 2019 Director of IT Alva Bharat

Director of Marketing Goh Hui Min The Board of Directors holds meetings at least once in every two Based on the Annual General Meeting Shareholders’ Resolution, the months or whenever requested by composition of Telkomsel’s Board of Directors effective from January 16, any of the Board members or by 2020, was as follows: any of the Commissioners or by shareholder(s) who represent at Telkom Representatives least 1/10 of the total issued shares of the Company with valid voting President Director Setyanto Hantoro rights. The Board of Directors Director of Sales Ririn Widaryani also holds joint meetings with Director of Finance Heri Supriadi the Board of Commissioners to present reports on the operational Director of Human Capital Management Irfan Ahadi and financial performances of the Director of Network FM Venusiana R Company as well as to discuss and seek the necessary approval for the corporate agenda. The quorum Singtel Representatives for the meetings of the Board Director of Planning and Transformation Edward Ying Siew Heng of Directors is four members, Director of IT Alva Bharat including one Director nominated by each shareholder of the Director of Marketing Goh Hui Min Company that possesses at least 10% of the total issued shares of the Company.

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ANNUAL REPORT 2019 Name Position Meeting Attendance EXTERNAL AUDIT Ririek Adriansyah President Director 14 During the AGMS, Telkomsel’s Emma Sri Martini President Director 17 shareholders empower the Board of Sukardi Silalahi Director of Sales 15 Commissioners to appoint external auditors. The external auditors serve Ririn Widaryani Director of Sales 20 until their removal or resignation. Heri Supriadi Director of Finance 37 The Audit Committee assesses the Bob Apriawan Director of Network 14 external auditors based on factors such as the performance and quality Iskriono Windiarjanto Director of Network 18 of their audit and the independence Irfan Ahadi Director of Human Capital 33 of the auditors, and recommends Management their appointment to the Board of Edward Ying Director of Planning and 32 Directors in the frame of synergy Transformation with the majority shareholding. In order to maintain the Montgomery Hong Director of IT 9 independence of the external Bharat Alva Director of IT 26 auditors, Telkomsel has developed Alistair Johnston Director of Marketing 17 policies regarding the types of non-audit services that the external Goh Hui Min Director of Marketing 18 auditors can provide and related approval processes. REMUNERATION

The Audit Committee has also The General Meeting of Shareholders is authorized to determine the reviewed the non-audit services amount of remuneration for members of the Board of Commissioners and provided by the external auditors Board of Directors based on the recommendations from the Remuneration during the financial year and the fees Committee. The remuneration structure for Directors and Commissioners paid for such services. comprises three components, namely fixed compensation, variable The Audit Committee is satisfied compensation, benefits and facilities. that the independence of the external auditors has not been 1. Fixed Compensation impaired by the provision of those Fixed Compensation comprises the base salary with reference to the AGMS. services. The external auditors have 2. Variable Compensation also provided a confirmation of Variable Compensation shall be paid in form of a yearly bonus. The amount their independence to the Audit of yearly bonus will be determined in the AGMS. Committee. 3. Benefits & Facilities Telkomsel provides benefits such as medical, allowance, housing, membership, communication and insurance.

For the year ended December 31, 2018 and 2019, the Company paid aggregate compensation of Rp269.1 billion and Rp259.0 billion to all Commissioners and Directors, a decrease of 3.8% YoY.

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WHISTLEBLOWING The detailed scope of duties and The Investor Relations team is responsibilities of the Corporate responsible for: Telkomsel applies a firm Secretary includes: • The distribution of accurate and whistleblowing policy. This policy • To ensure the governance of the complete information on the regulates the ways in which an Company’s operations, particularly Company’s business activities, employee or other parties report in terms of the alignment of strategies and performance in a fraud, unethical behavior, corruption, interests among the stakeholders timely manner. dishonest practices or breaches of as well as the distribution of rights • The issuance of Info Memos on internal control and code of conduct and responsibilities among the key a quarterly basis, which will be to Telkomsel’s Audit Committee. elements of the Company. inserted into Telkom’s quarterly The Committee will then follow up • To ensure that all policies and Info Memo, and the Annual with an investigation. As long as the business process of the Company Report. reporting of such matters is done in are in compliance with the • Participation in a series of good faith, Telkomsel ensures that prevailing laws and regulations. corporate events, such as road the employees making such reports • To ensure effective shows and conferences, investor are treated fairly and protected communication between the meetings and site visits with the from reprisals. All whistleblower Company, the regulators and mass holding companies. complaints are investigated by a media and develop the Company’s special audit team and the results capability to fulfill its obligations to In 2019, we held 396 meetings of the investigation are reported to the Government. with investors/analysts and held a the Audit Committee for follow up • To manage working facilities total of 23 non-deal road shows/ action. and infrastructure in order to conferences in Jakarta, Singapore, facilitate the efficient and effective Hong Kong, Melbourne, Sydney, CORPORATE SECRETARY operation of the Company. Paris, Copenhagen, London, Boston, • To develop the Corporate Image New York and San Francisco. The scope of work of the Corporate and carry out the Corporate Social For any inquiries regarding Secretary is to ensure regulatory Responsibilities (CSR) activities. Telkomsel’s financial and operational compliance and to manage • To hold the Corporate General information, please visit Telkomsel’s relationships with the Company’s Meetings, including Annual website, www. telkomsel.com or stakeholders on the principles General Meeting of Shareholders. Telkom’s website, www.telkom.co.id. of good corporate governance, including the relationships INVESTOR RELATIONS with employees, shareholders, government institutions, the Our Investor Relations represents public and the media. The a commitment to promote Corporate Secretary manages the transparency and fairness of the interrelationship between the Board Company to the shareholders and of Commissioners and the Board of stakeholders. Together with Telkom’s Directors as well as the relationships Investor Relations team, we facilitate among the Board members. meetings and conferences with existing and potential institutional investors, investment and market analysts as well as financial communities.

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ANNUAL REPORT 2019 THE FUNCTION AND ROLE INTERNAL AUDIT CHARTER assignments, 15 commerce and OF INTERNAL AUDIT support assignments, and 8 Internal Audit is supported by continuous audit assignments. The function of the Internal Audit the Internal Audit Charter which Continuous audit, which was is to provide independent and describes its vision and mission, implemented in 2019 by Internal objective assurance, particularly code of conduct, scope of authority Audit, represents an automation on the effectiveness and integrity and responsibility. The Internal method to assess control risk & of risk management, control and Audit Charter makes reference identify any unexpected events on governance processes. Internal Audit to applicable rules and standards population and more frequent basis. also executed consulting activities including standards issued by The to support Telkomsel in achieving its Institute of Internal Auditors. objectives. INTERNAL AUDIT PROGRAMS The Internal Audit prepares an AND ACTIVITIES IN 2019 annual audit plan approved by Audit Committee and maintains close In 2019 Internal Audit executed coordination with Audit Committee 43 assurance and consulting and Management on the execution. assignments which consisted Internal Audit directly reports to the of 12 integrated financial audit CEO and the Audit Committee. assignments, 8 Information Communication & Technology

In 2019 Internal Audit executed 43 assurance and consulting assignments which consisted of 12 integrated financial audit assignments, 8 Information Communication & Technology assignments, 15 commerce and support assignments, and 8 continuous audit assignments.

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Over the past few years, the complex business environment, Company has realized that continuous technology In 2019, the transformation into a digital development, continuous regulatory Company company means not only competing change and globalization. with other telecommunication approved, companies, but also competing In 2019, the Company approved, with startups and larger global assessed and responded to assessed and digital companies, thus creating corporate-level risks which could new opportunities, challenges and affect the business and business responded to benefits. continuity of the Company, implemented a Business Continuity corporate- Managing a Digital Business in Management System, and updated the future is not an easy task. business processes and internal level risks This means that the company controls as needed. must develop digital capabilities which could in all of its activities, ranging from A. POTENTIAL RISKS human resources and culture affect the to organizational structure, in The risks that have the potential to alignment with organizational goals. hinder the Company’s performance business and This must be done to maintain and responses to mitigate these risks its position as a leader as well as include: business the continuity of the business. Companies are also required to be 1. Failure to optimize revenue continuity of increasingly innovative and strategic from DATA services in serving the market. The telecomunication business the Company. has shifted from Legacy business In connection with these emerging (Voice and SMS) to Data. The challenges and risks, the role availability of 4G technology, of Risk Management has also which can provide Data access expanded in line with the demands speeds of up to 300 Mbps, has of stakeholders as related to the changed the business landscape. transparency and accountability The decrease in Legacy revenue of the Company, the increasingly is not proportional to the increase in revenue from Data because the increase in Data traffic, although significant, is not proportional in

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ANNUAL REPORT 2019 terms of revenue per megabyte 3. Simplify the process of replacing 1. Digital lifestyle programs, (RPMB). The industry recorded 4G USIM cards for customers especially games, by investing average RPMB of Rp 7.6/MB in by using various methods, both as a publisher and distributor 2018 which decreased to Rp 6.1/ through GraPARI and direct of games to increase active MB in 2019. The decrease in RPMB offers to customers. game users, while video and Data usage is due to competition, 4. Increasing the number of music programs have increased whereby operators compete to HVC customers (high value MaxStream and Langit Music attract new customers by offering customers) with a personal users. affordable Data prices. package program, lifestyle 2. Digital advertising programs & loyalty program as well as which exploit Telkomsel’s The Company has carried out network priorities and problem internal assets, Apps mitigatory steps to reduce the risk solving for HVC customers. (MyTelkomsel, ROLI), and the of decreasing revenue and using Telkomsel website (www. Data, including: 2. Inability to Monetize Digital telkomsel.com), so that 1. Marketing programs to increase Business in Response to Telkomse’s advertisement ARPU, including providing Declining Legacy Revenue products can be further personalized packages and Digital Services are part of the introduced and used. treatments based on customer digital product business. The 3. Strengthening collaboration loyalty, massive recharge types of Digital Service products with banks and launching programs as a stimulus to include: digital lifestyle (DLS), mBanking Apps that can be used customers, launching sharing digital banking, digital advertising, by all banks. quotas for the family segment, IoT and M2M. In the coming years, 4. Big Data API which focuses on and pricing zones as well as the Digital Service products consist strengthening product lines addition of special packages to of video, games, Big Data and such as ID verification, reference customers. advertising are expected to be the ID, and credit scoring so that 2. Expanding the use and main revenue creators as digital these can be used by Telkomsel distribution of LTE data through ecosystem enablers. partners for monetization. low cost 4G smartphone 5. Fulfillment of human resources bundling programs and 4G Data The limitations on the Company’s who have specific qualifications packages as well as expanding business resources and scope in producing Digital Business coverage and selectively are one reason as to why Digital products. expanding 4G network Services are still undeveloped. In penetration to remote areas. addition, Digital Service products still require additional socialization to customers.

Mitigation undertaken to reduce the impact of risks associated with Digital Services include:

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3. SHORTAGE of capable people to support the The Company has identified transformation of the new capabilities / Company The pace of business change competencies to support the and development are very different compared to the past. transformation process This is due to several influences including: market dynamics, new both in terms of technology technologies and regulatory frameworks. There is a term that and business, which it is in business is currently entering the VUCA era in which the business shortage of. world is very vulnerable to Volatility, Uncertainty, Complexity and Ambiguity. In its digital transformation, the to retail customers, to providing Company has compiled critical wholesale customers in various The Company is required to points that must be carried out fields / industries with business adapt and continue to transform as key success factors, and one solution services. The Company’s in order to survive and compete, of the most important is the employees are required to both with peers as well as Company’s success in carrying out understand the end-to-end companies in other industries that people capability development. solution services that will be disrupt the Company’s business. The Company has identified new directly delivered to wholesale Therefore, the Company has capabilities / competencies customers (B2B solutions). On established a medium-term to support the transformation the other hand, the Company digital transformation strategy to process both in terms of is also required to maintain and take the company from being a technology and business, which it even increase revenue from the connectivity provider to a digital is in shortage of. B2C customer segment (HVC, ecosystem enabler, whereby the Non-HVC, and Family), given that Company becomes a solution The Company’s biggest revenue from that segment is still provider for B2B customers with challenge in conducting people very significant. Data as a core business replacing development is changing the Legacy (Voice and SMS), and the work culture of employees business model moves from being who previously focused on product-focused to become providing connectivity services customer-centric.

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ANNUAL REPORT 2019 Mitigatory steps carried out by the B. BUSINESS CONTINUITY C. INTERNAL CONTROL Company in order to minimize MANAGEMENT SYSTEM IMPROVEMENT PROGRAM the risks that may arise from the (BCMS) transformation process, especially With reference to the 2013 COSO in terms of people development, The Company has implemented a Internal Control Framework and TM includes setting up of B2B end- Business Continuity Management Forum Framework, the Company to-end organization; segment System / BCMS using the ISO made continuous improvements and horizontal / enabler teams; 22301: 2012 framework. With to the business process and Risk performance calibration cycle for the application of this BCMS, the Control Matrix (RCM) as related VPs and GMs senior pro-hires in Company is expected to be able to to Internal Control over Financial place Sales Heads and Solution continue providing its main services Reporting (ICoFR) and operations, to architects for B2B as well as to customers with the minimum ensure the process of achieving the Analytics and User Interface / User level of service that has been Company's targets was supported Experience (UI / UX) specialists for accepted and predetermined by by business processes and internal B2C; and Company Wide Culture management, in the event of a crisis controls is in accordance with the transformation covering a future- or disaster. organizational changes, policy fit mindset, by expanding the’agent changes / regulations, automation of change’ role in accelerating As implementation of the Business and simplification of processes. mindset transformation for level 4 Continuity Management System The improvements made include employees and below; agile ways policy, the Company has conducted ensuring the readiness of the of working, to be applied in all rehearsals for several scenarios. Company to implement International directorates; plus completion of In 2019, the Company managed to Financial Reporting Standards (IFRS), assessment and overall iteration overcome crisis / disasters, both in particular IFRS 15 - Revenue from for Smart Attacker & Fixed Mobile at the Corporate level for example Contracts with Customers, IFRS 9 - Convergence as well as HCM in the case of Huawei which has Financial Instruments, and IFRS 16 Agile projects. been placed on the United States – Leases, and the preparation for the Entity List, and at the Area level, adoption of those new accounting namely blackouts due to PLN power standards into PSAK in January 2020. outages, Jakarta riots and forest fires The implementation of IFRS is a in and Kalimantan. consequence of the Company being a subsidiary of PT Telekomunikasi Indonesia Tbk (TELKOM) and an associate company of Singapore Telecom Mobile Pte Ltd (Singtel Mobile).

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1. Refarming of the and 900 MHz frequency bands, with 3. Extension of Operating 800 - 900 MHz a radio frequency spectrum band License for Cellular Frequency Band allocation between 880 MHz - 890 Mobile Networks MHz paired with 925 MHz - 935 MHz Following on the Ministerial Decree on the 800 MHz band and 890 MHz Based on the evaluation results of on the rearrangement of 800 MHz - 895 MHz paired with 935 MHz - the extension of operating licenses and 900 MHz Frequency Bands 940 MHz on the 900 MHz band. for the 5 (five) annual cellular for the Implementation of Cellular telecommunications network Mobile Network Operations issued 2. Extension of the 2100 owned by Telkomsel, the Ministry on December 19, 2018 and the MHz 2nd Carrier Radio of Communication and Information Decree of the Director General Frequency Band License Technology has issued a Ministerial of Resources and Equipment of Decree on the License of PT. Post and Information Technology Based on the evaluation results Telekomunikasi Selular to operate a on Technical Instructions on of the extension of the 2100 MHz Cellular Mobile Network. With this Rearrangement of the 800 MHz and 2nd carrier Radio Frequency band license, Telkomsel has the right to 900 MHz Radio Frequency Bands license for the 10 (ten) annual operate cellular mobile networks for the purposes of the operation owned by Telkomsel, the Ministry on the 800 MHz, 900 MHz, 1800 of cellular mobile networks, of Communication and Information MHz, 2100 MHz and 2300 MHz radio Telkomsel carried out frequency Technology issued a Ministerial bands, as well as providing basic rearrangement activities nationally Decree (KM) on the Extension of the telephony services for the next 5 beginning in February 2019 and Determination of the 2.1 GHz Radio years. ending on April 1, 2019. These Frequency Band in the Range 1935- frequency rearrangement activities 1940 MHz in pairs with 2125-2130 4. Fulfillment of were carried out using a cluster MHz PT. Telekomunikasi Selular. Telkomsel's obligations system starting from the Papua With the issuance of this license, (compliance) to the cluster and ending in the East Java Telkomsel has the right to utilize 5 Government cluster with the involvement of the MHz of this frequency band for the Telkomsel Network Directorate team next 10 years until 2029, along with During 2019, Telkomsel was declared at both head office and regional 10 MHz bandwidth in the frequency to have fulfilled all obligations issued levels. Following the rearrangement, range of 1940-1950 MHz (2 x 5 by the government, including: Telkomsel operates contiguous MHz) paired with the 2130-2140 frequency bands on the 800 MHz MHz (2 x 5 MHz) band which is still valid today.

Working Visit of the Directorate General of Resources and Equipment of Post and Information Technology at the 800 MHz and 900 MHz band the Radio Frequency Refarming Post on April 1, 2019

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ANNUAL REPORT 2019 a. Related to the fulfillment of d. Telkomsel has also submitted a 3G domestic component level guarantee of payment of the BHP achievement (TKDN) both for the IPSFR (spectrum surety bond) Capital Expenditure (CAPEX) and next year to the Government in Operational Expenditure (OPEX) accordance with relevant statutory components, which according provisions. to verification results issued by e. Telkomsel has fulfilled all the Ministry of Communication payment obligations of the and Information Technology Telecommunications Operating is still above the target set by Rights Fee (BHP Jastel) and the government of at least 30% Universal Service Contribution domestic components for CAPEX (KPU/USO) to the Government, and 50% for OPEX. whereby the value of the b. Related to the level of cellular obligation is calculated by self- mobile network service quality assessment in accordance with fulfillment both in terms of service applicable laws and regulations. quality and network quality, during f. In order to comply with the 2019 Telkomsel is considered to provisions in the Minister of 5. Trial of 5G Technology have met the minimum standards Communication and Information to Support Industry 4.0 issued by the government Technology Regulation on whereby the network quality score Fundamental Technical Plan and On November 13, 2019, the Ministry is based on measurement results Letter (BRTI) dated 18 September of Communication and Information by the Government. As for the 2019 regarding the Extension of Technology appointed Telkomsel fulfillment of service quality, this the Termination of Use of the as a provider of cellular mobile conclusion is based on the results 6ABCD Access Code, Telkomsel networks involved in the trial of of the audit/verification issued by has carried out the termination of IMT-2020 (5G) technology for the Ministry of Communication 21 6ABCD Call Center access code the industrial sector based on a and Information Technology on numbers from 15 Bank partners letter from the Director General of all data parameters submitted by effective as of 16 December 2019. Resources and Equipment of Post Telkomsel. This termination was carried and Information Technology (SDPPI). c. Telkomsel has fulfilled all BHP out prior to the Freeze Release For this trial activity, Telkomsel IPSFR payment obligations, both Network and IT activities held on upheld the theme "Enhancing Nation for the 2100 MHz frequency December 18, 2019 to January Industry 4.0 with 5G Trial". The band (1st carrier, 2nd carrier and 8, 2020 which aimed to maintain 5G trials were planned for several 3rd carrier), 900 MHz, 800 MHz, services to Telkomsel customers cities, and during the November - 2300 MHz and 1800 MHz. Related during Christmas 2019 and New December 2019 period was already to this matter, the Ministry of Year 2020 (NARU). been held in two cities, namely in Communication and Information Batam on 28-29 November 2019 Technology has issued a and in on 7 December ratification of all these payments. 2019. In the trial, Telkomsel

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demonstrated the potential use case As set forth in the letter from the of 5G for industries such as Vehicle Secretary of the Directorate General The 5G trials Identification and Management, of Post and Information Technology were planned Body Camera for Security, VR of the Ministry of Communication Immersive Meeting, Physical and Information Technology dated for several City Model, Mixed Reality for November 7, 2019 concerning Manufacturing, Remote Operation Notification of the Launching of cities, and Mining, Intelligent Drone, Smart the Information and Complaints Agriculture, AR Remote Assistance, Service Ticketing Update Directorate during the Smart City, Safe City, Smart Airport, General of PPI, Telkomsel Smart Education and Smart Finance. continuously follows the progress of November - the new application which has the 6. Telkomsel proposed capability to automatically improve December 2019 and supported the service to all operators’ subscribers, Development of amounting to more than 200 million period was the Smart Ticketing customers. During implementation Application for of Smart PPI, this application already been Information and requires some development and Complaints Services improvement, especially for the held in two of the Directorate technical aspects so as to facilitate General of PPI ("SMART and speed up the customer service cities, namely PPI") - BRTI process. Telkomsel has an active role in providing input to the Ministry of in Batam In the context of implementing CIT to improve Smart PPI. the BRTI Decree on the Handling on 28-29 of Complaints on the Abuse of 7. Implementation of the Telecommunications Services, IMEI Device Control November 2019 Telkomsel has proposed an Policy and in South automatic application system update to simplify customer complaints On October 18, 2019 the Minister Jakarta on 7 handling, including system of Communication and Information integration for blocking/unblocking Technology has stipulated a December 2019. it according to customer requests Ministerial Regulation (PM) on the so that complaints can be handled Control of Telecommunication faster and more easily with several Equipment and/or Devices types of reporting available as connected to Cellular Mobile needed. Networks through the Identification of the International Mobile Equipment Identity (IMEI) which is effective for 6 months from the date of promulgation.

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ANNUAL REPORT 2019 The purpose of the issuance of the Government goals, Telkomsel The main Kominfo Regulation is to protect the encourages and pioneered the task of the public from telecommunications concept of using a Whitelist system equipment that does not meet the in controlling IMEI which has a IMEI control technical requirements and/or crime preventive approach to be applied in proceeds and to prevent/reduce the IMEI control regulation in Indonesia. taskforce is circulation of illegal/black market telecommunications equipment 8. Customer Registration to prepare or those with unregistered IMEI for Prepaid numbers. Telecommunications and evaluate Services Currently the Ministry of the results of Communication and Information The Ministry of Communication Technology is preparing a trial and Information Technology the trial test test with all operators in order and BRTI has conducted a to draw up the Regulation of the Telecommunications Services and assist the Director General (Perdirjen) to Customer Registration System serve as technical guidelines for Audit for each Cellular Operator. Government in the Ministry of Communication and This was done to create a healthier Information Technology Regulation telecommunications industry climate formulating which must be implemented within and meet the registration objectives 6 (six) months, by April 2020. as mandated by the Regulations Directorate A taskforce team consisting of along with its amendments and BRTI representatives of the Ministry of ICT Tap. To support the smooth audit General and representatives of all cellular process, Telkomsel has conveyed Regulations. operators is currently being prepared the necessary documents to the through a Ministerial Decree in order Ministry of Communication and to support this. The main task of the Information Technology and BRTI. IMEI control taskforce is to prepare The Ministry of Communication and evaluate the results of the trial and Information Technology and test and assist the Government in BRTI is currently also drafting a formulating Directorate General Minister of Communication and Regulations by using one of the Information Technology's Regulation two concepts, Whitelist system on Telecommunications Services or Blacklist system. To prioritize Customer Registration for which customer protection and achieve ratification is planned in 2020.

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9. Regulation of d. Fulfil services and protect USO TELINFO TUNTAS the Minister of customers in accordance with ARBITRATION CASE Communication statutory provisions. and Information e. Carry out efforts to The Telkomsel Consortium Technology on the safeguard and protect the (Telkomsel and PT Dayamitra Implementation of services provided as well as Telekomunikasi) signed the USO Telecommunications Telecommunications Facilities Telinfo-Tuntas Contract with BAKTI Services and Infrastructure in accordance (previously known as BP3TI). During with statutory provisions. the period of the said contract, On October 18, 2019, the Minister f. Set forth all working BAKTI defaulted by unilaterally of Communication and Information cooperation with regards terminating the USO Telinfo-Tuntas Technology has stipulated a to the Provision of Contract, which causing losses for Regulation on the Implementation Telecommunications Services in the Telkomsel Consortium which at of Telecommunications Services a written agreement. that time have already completed its (Jastel Regulation) promulgated by g. Provide contact information initial obligations as stipulated in the the Director General of Laws and services that have facilities to USO Telinfo-Tuntas Contract. Regulations of the Ministry of Law serve complaints and inquiries This case has already been examined and Human Rights on October 25, from customers at least in and resolved by BANI, which in 2019. The Jastel is a simplification the form of telephone and substance ruled that BAKTI must of the 16 Communication and electronic mail services. pay damages to the Telkomsel Information Technology Regulations h. Prioritize the delivery, Consortium amounting to Rp217.7 related to telecommunications distribution and delivery of billion. In November 2019, BAKTI services. This was carried out by important information to the paid Rp91.4 in compensation to the the Ministry of Communication public related to the interests of Telkomsel Consortium, and so the and Information Technology in the country. total amount of compensation still accordance with the President's i. Publish the achievement of owed to the Telkomsel Consortium instructions to simplify regulations service quality standards for amounts to Rp126.3 billion. and the need for easy licensing each reporting period online in order to increase domestic through the information In December 2019, the Telkomsel investment. service contact page of the Consortium and BAKTI signed a Telecommunications Service mutual agreement regarding the Telkomsel’s obligations as a Provider. value of the outstanding damages telecommunications service provider that BAKI must pay to the Telkomsel are as follows: As information, this Jastel Consortium as stated above. As a. Ensure the implementation of Regulation will take effect 6 of now, Telkomsel Consortium telecommunications services in months after the date of its is still waiting for payment of the accordance with its Operating promulgation and the Ministry of remaining amount from BAKTI. Permit. Communication and Information b. Fulfill its service commitments. Technology will issue a Director c. Prioritize the use of domestic General Regulation to serve telecommunications equipment as technical guidance for and/or equipment as far as Telecommunication Services possible and available. Providers.

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ANNUAL REPORT 2019 CSR SUPPORTS THE VISION TELKOMSEL CSR OBJECTIVES CSR STRATEGY AND MISSION OF THE COMPANY In conducting its CSR program, In order to support the achievement Telkomsel has several objectives, of the company’s 2019 goals and Telkomsel’s vision is to be a world namely: targets, particularly with regard to class, trusted provider of mobile • Maximizing the positive impact of the company’s mission to become Digital Lifestyle services and the company on society. a Digital Telco Company, Telkomsel solutions, with a mission to deliver • Introducing the latest innovations has established strategic initiatives Mobile Digital Services and solutions from Telkomsel in the form of to build efficient, ICT-based CSR that exceed customers’ expectations, excellent products or services in program platforms that will have create value for our stakeholders and the field of technology to solve long-term, sustainable impact. support the economic development various social problems, while These strategic CSR initiatives were of the nation. Telkomsel’s numerous simultaneously increasing the level realized through CSR programs in CSR programs and initiatives have of technological adoption by the four (4) pillar categories, namely therefore been designed to support public. Education, Digital Citizenship, the achievement of the Company’s • Supporting its transformation into Community Empowerment & vision and mission. a digital company. Wellbeing, and Philanthropy.

Through a variety of CSR programs CSR AND SUSTAINABILITY A. EDUCATION based on its vision and mission, IndonesiaNEXT Telkomsel desires to strengthen As a company that operates in IndonesiaNEXT was one of its position as a company that is numerous Indonesian locations Telkomsel CSR Masterpiece technologically innovative, delivers in direct contact with the public, programs in 2019. This program products and services to help Telkomsel consistently uses prepared students for global solve various social economic technology to deliver benefits to competition at national and problems, and provides added value communities towards supporting international levels. In its fourth for Indonesia. future sustainability. Therefore, year, IndonesiaNEXT upheld the Telkomsel’s various CSR programs theme “Yes I’m The Next” with are clearly designed to broadly the aim of preparing Indonesian benefit society. students to compete with students

Telkomsel’s numerous CSR programs and initiatives have therefore been designed to support the achievement of Company’s vision and mission.

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In 2019, IndonesiaNext’s events were attended by 4,625 registrants from 280 universities and 4 vocational schools participating in 6 Indonesian cities such as Bandung, Sumedang, Yogyakarta, Surabaya, Banjarmasin and Samarinda.

from various countries at regional attended by 4,625 registrants from The participants were directed to and international levels. This 280 universities and 4 vocational take part in the Massive Online theme demonstrates Telkomsel’s schools participating in 6 Open Course (MOOC), an online commitment in developing Indonesian cities such as Bandung, training program consisting Human Resources, especially Sumedang, Yogyakarta, Surabaya, of Creative Content, Office, Indonesian students, to attain the Banjarmasin and Samarinda. Presentation and Creative Design capability and competence to to which is guided by mentors who compete at national, regional and As part of the IndonesiaNEXT are competent in modules such international levels. 2019 Program, public lectures as Microsoft Office Master, Adobe were held at selected universities Visual Design Specialist, Social The training provided was not with the theme “Digital Media Content Creator. only delivered through offline Leadership” featuring speakers classes (on ground training) but from academics, industry, and Subsequently, participants also digitally using through online practitioners so as to broaden engaged in various hard skills Learning Media portals based on students’ insights in preparing training leading to international the concept of MOOC (Massive careers and entrepreneurs. All certification in Microsoft Office Online Open Course), thus giving participants were also directly able PowerPoint 2016. Those who participants the freedom to learn to experience Telkomsel products passed were invited to participate anytime and anywhere. In 2019, and services such as OMG in a 2-day communications IndonesiaNEXT's events were Challenge and Link Aja. skills training.

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ANNUAL REPORT 2019 In 2019 T-PERPUS focused on campaigning for a digital literacy by carrying out roadshows in several Indonesian cities that featured talkshows, book reviews and masterclasses related to literacy by presenting speakers who are writers, editors, publishers Selected finalists from each city/ T-Perpus National Literacy and content creators. These region presented their ideas Campaign (Gerakan Literasi programs are expected to increase in front of a jury comprising Nasional) public interest in reading in Telkomsel Area / Region / Branch As a Digital Telco Company, Indonesia and create a digital top leaders and content partners. Telkomsel is always committed to reading culture. Each city then sent their 6 best moving forward and accelerating talents to take part in a series the nation’s development B. DIGITAL CITIZENSHIP of national bootcamp activities. through the use of appropriate The NextDev 2019 The talents enjoyed a visit to technology solutions. To support The NextDev Talent Scouting the Telkomsel Smart Office this commitment, Telkomsel has In 2019, Telkomsel once again Headquarters, Digital Experience created T-PERPUS, a Telkomsel held The NextDev Talent Scouting, in Tdx, Neuro Lingustic Program, digital library application platform a search for early stage digital professional attitude program, in collaboration with Gramedia startups focused on social impact industry talk sharing session and Digital holds more than 6,000 in Indonesia. In its fifth year, Idea Presentation Discussion, titles of books, newspapers, The NextDev upheld the theme ending with a test held by the magazines from leading publishers “Social Impact and Go Beyond” national qualification panel in that can be downloaded for free to show Telkomsel’s commitment the form of a jury consisting of on Android or iOS. to developing the national digital industry, academics, professionals/ ecosystem and its corporate social practitioners and Telkomsel’s T-PERPUS, which is part of responsibility whereby it equipped top leaders. Telkomsel’s Corporate Social startups with Digital Business Responsibility (CSR) under the capabilities and competencies to The winners were announced at education pillar, aims to improve support positive socio-economic the ‘Indonesia Next Best Talents the knowledge and professional impact for Indonesia. 2019’ as the Crowning Session. skills of Indonesia’s youth and They were awarded a Reward to support the government’s This year’s The NextDev focused Program in the form of short National Literacy Movement on ‘social impact & going beyond’ courses at global multinational (GLN) program. to present business solutions that companies, industries, have positive social impact for and universities. Indonesia.

Through The NextDev, Telkomsel opened access and encouraged the formation of startups by youth across the country, not only in central areas but also

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from April to October 2019, the participants obtained mentorship, offline and online training related to business strategy, sprint design, branding, product development and investment in the regional areas. Through to go international and media as well as digital marketing. In The NextDev, Telkomsel hopes publications), and Golden Ticket addition, The NextDev Academy to help fostering initiatives to The NextDev Academy (tickets gave materials on how to improve and breakthroughs from all to participate in a comprehensive start up team dynamics and over the country so that these early stage startup development ecosystem building in general, young people can contribute program). while nurturing the spirit of appropriately and equitably to the collaboration between startups Indonesian public, and we can all The following is the list of to further their social impact. continue to move forward. startups which passed the Local Subsequently, selected startups Stage Pitch: Jagel ID, Daurulang, from the NextDev Academy will be For The NextDev Talent Scouting myAgro, Kedata Smart City sent by Telkomsel to the Singtel 2019, the main requirement for Analytics, Sertiva, IN-SUIT / Group Regional Future Makers to registrants was to have a Minimum DigiPin, Heikaku, Smart Enclosure, represent Indonesia. Viable Product (MVP) that has Qur’an Call, Plastikinia, Bolehbaca. positive social impact on people’s com, iBunda, Crowde, Eduka, The NextDev Summit 2019 lives in various fields. In total, 270 Blod ID, Neurafarm, Ravenry, Having successfully held The of the best social impact startups Travelbuddy, GotongRoyong.com, NextDev program every year in Indonesia presented brilliant Artria, DukungCalonmu.com, since 2015, this year Telkomsel ideas at the Local Stage Pitch that Dapurtani, Trakteer, LelangBintang. presented the very first The took place from April to October com and MuslimLife. NextDev Summit, which is a 2019 in nine cities: Jakarta, technology conference that Denpasar, Palembang, Makassar, The NextDev Academy connects stakeholders from Medan, Yogyakarta, Pontianak, Meanwhile, The NextDev Academy various backgrounds, ranging from Semarang and Surabaya. 2019 is an event to improve the tech-enthusiasts, startups, creative quality of applications created by digital communities to investors. The 25 best startups from these the 25 best startups who were Themed “Spark the Change”, The nine cities received some form finalists at The NextDev 2018. NextDev Summit 2019 accelerated of 5G startup development: Themed ‘Towards an Impactful the spirit of creating meaningful Grant Money (development fund Digital Startup Ecosystem’. During change through collaboration with for the best of the best), Good the academy which took place key players in the digital sector. Opportunities (opportunities to attract investors and expand the startups’ value proposition), Great Mentors (meet startup experts and explore new insights), Generate Exposures (opportunities

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ANNUAL REPORT 2019 The NextDev Summit 2019 put together various technological experiences into conference format, supported by an integrated digital ecosystem. One of the technology conferences featured 105 speakers on various topics The NextDev Academy X Singtel For 2019, Telkomsel successfully related to digital technology, Group Future Makers sent 2 startups to Future Makers. including Johnny G. Plate in 2019, Telkomsel sent several FishGO, a digital platform designed (Minister of Communication startups from The NextDev to increase the welfare of and Information of the Republic Academy to join the Singtel Indonesia’s traditional fishermen of Indonesia) and Wishnutama Group Future Makers event which using long-range sensory (Minister of Tourism and Creative was held in Singapore on 24-28 technology to determine the easily Economy of the Republic of June 2019, along with the Asian accessible fish-catching potential Indonesia). Venture Philanthropy Network zones and Diffago, an all-in-one (AVPN) Conference 2019. The solutions platform dedicated to During this technology competition was attended by sustainably solve disability issues. conference series, Telkomsel representatives from various also presented various 5G countries, selected through local The NextDev Academy X Unleash use-cases in collaboration with competitions organized by all In 2019, The NextDev Academy Huawei, such as 5G Artificial telecommunications operators showcased the latest social Intelligent (AI)-based Smart under Singtel Group, namely enterprise development concepts City with Intelligent Operation Telkomsel (Indonesia), Optus and curriculum, featuring Center, 5G Cloud Virtual Reality (Australia), Singtel (Singapore), a collaboration between (VR) and Gaming Industry, 5G Globe (Philippines), AIS (Thailand), Telkomsel and a key player in Smart Airport Ground Handling, Airtel (India). Selected start- global innovation labs, namely 5G Smart Education, 5G Safe ups will receive development the Innovation Lab for SDGs, City, 5G Smart Agriculture, and funds with a total value of up to which encourages digital talent 5G Smart Finance. SGD 1,000,000. throughout the world to produce solutions for the United Nations Future Makers, which has been a Sustainable Development Goals Singtel Group regional program (UN SDGs). since 2017, aims to encourage social impact startups to produce The six-month incubation innovative solution that can help program implemented the address key social challenges UNLEASH curriculum together facing Asia today. with a Social Lean Canvas model, so that startups can produce mature product and business planning strategies that are ready to be marketed.

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During the UNLEASH program, Based on The NextDev throughout Indonesia, as well as talent from The NextDev membership distribution data from supporting programs to realize Telkomsel formed teams together 2015 to 2017, less than 10% of the government priority programs with other talents with the approximately 4,000 early stage through the 1,000 Digital Startup aim of creating joint solutions startups in Indonesia came from National Movement. through the five stages of the Eastern Indonesia. Therefore in UNLEASH innovation program, 2018, Telkomsel On the Mission In each of these cities, participants namely Problem Framing, was born under the name ‘The participated in a Training and Ideation, Prototyping, Testing NextDev On the Mission’, which Coaching curriculum designed and Implementing. Teams were focused on the cities of Ambon to create a basic understanding supported by experts, facilitators, and Kupang with a mission of digital products. Telkomsel and investors throughout to accelerate the abilities and expects this initiative to produce the process. capabilities of youth in Eastern 45 digital products from each Indonesia to create and develop host city. Telkomsel sent one of its best digital products. evangelist startups from the In addition to providing materials UNLEASH program, e-Health Telkomsel On the 2019 mission, and facilities, Telkomsel On the Check Lab, to take part in the which is supported by the Mission 2019 also provided access Innovation Lab for SDGs program Ministry of Communication to stakeholders as well as national held in Shenzhen, China on and Information Technology recognition in cooperation with November 6-13, 2019. (Kemenkominfo) and Kumpul the Ministry of Communication Coworking Space, has expanded and Information Technology Telkomsel On the 2019 Mission to supports more regions towards (Kemenkominfo) and the KUMPUL As a form of commitment to inspiring more startups and Coworking Room. This initiative accelerate the country through innovators in Eastern Indonesia to is also part of Telkomsel’s support more equitable distribution of advance together with Telkomsel. for the government in the form of digital ecosystems in Indonesia, the 1000 Digital Startup National Telkomsel held Telkomsel On the This program was held in three Movement to accelerate the 2019 Mission. cities namely Minahasa-Manado, birth of new, high quality digital Mataram, and Kendari. The choice startup companies. of locations reflects Telkomsel’s commitment to producing and advancing new digital talent

Based on The NextDev membership distribution data from 2015 to 2017, less than 10% of the approximately 4,000 early stage startups in Indonesia came from Eastern Indonesia.

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ANNUAL REPORT 2019 Internet Baik This year, Internet Baik applied a C. COMMUNITY EMPOWERMENT & At the end of 2019, as a form of comprehensive educational concept WELL-BEING Telkomsel’s responsibility, Telkomsel from upstream to downstream. Baktiku Negeriku once again held the Internet Baik Starting from the formation of Telkomsel as a leading institution, initiative, a community education agents of change in the form has created the Baktiku Negeriku movement that offers a concrete of Telkomsel employees who program as a humble contribution solution for the alignment and participate in the Internet Baik to the country. Baktiku Negeriku optimization of good internet usage Training Of Trainer (TOT) program, focuses on improving the quality (Responsible, Safe, Inspirational they are then given the Internet Baik of life of people in various regions and Creative). In its fourth year application as the main media to throughout Indonesia, with of implementation, Internet Baik help educate the people. community empowerment and chose the theme “Transforming education programs. Internet Education” to demonstrate The Internet Baik Training of Trainers Telkomsel’s commitment to the this year was divided into two Since it was first held, Baktiku development of an educative digital concepts, namely a Theater Show Negeriku has developed from ecosystem, as well as the company’s Concept and ToT Class Concept. year to year, starting from a corporate social responsibility to The Theater Show Concept was focus on Educational programs raise public awareness in using held in Jakarta at the Telkomsel including training on the use of the internet. Smart Office, while the ToT training information technology for youth featured various notable speakers groups or youth organizations in Since it was first held, Internet Baik several areas. This training also has expanded from year to year. It In creating these agents of intends to make them agents of started from focusing on in-person change, the main benchmark was change, so that they can lead education of teachers and children the awareness of good internet their local communities towards in 2015 to optimizing internet usage usage, and the way that the agents a better life by utilizing the in developing creativity during 2016, of change communicated the digital ecosystem. We believe responding to hoaxes in 2018, and importance of good internet usage that technology transfer from now providing comprehensive to the general public. cities to rural areas is a must. education both face-to-face Indonesia’s rural communities and online in 2019. Internet Baik Up to now, five parties that have has many sectors with potential now focuses on transforming collaborated to support this event, like tourism, agriculture, the internet education to deliver online namely: Siberkreasi, Creators Hang cultural industry and many more educational solutions that have a Out, Blogger Community, ICT which needs to be improved positive social impact in Indonesia. Watch, Sob and Fammi. in this digital era so as to face the current challenges. Baktiku Negeriku also established a Digital Center in every region that its team visited. The Digital Center is a facility that supports technology transfer and access to information for the local community.

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In parallel with the fourth the internet wisely and how driving and building connections industrial revolution Baktiku to use the Baktiku Negeriku between village communities and Negeriku intends to make farmers’ application to sell the villagers’ modern business facilities such lives better by establishing products. as e-payment, e-commerce and an upstream-to-downstream e-finance. PDD targets SMEs, agricultural ecosystem which Patriot Desa Digital (PDD) cooperatives, BUMDES (village- uses information technology Patriot Desa Digital (PDD) is a owned enterprises) and pesantren aimed at young farmers groups Telkomsel CSR program that (Islamic boarding schools) in or youth organizations in several was launched in 2019 as a suburban and rural areas. areas. This technology will part of Telkomsel’s mission to facilitate the involvement of all establish digital transformation PDD 2019 Programs stakeholders through synergies and acceleration, especially in In 2019, PDD focused on between governments, smart rural areas as villages are now introducing the PDD program agriculture, access to markets, becoming drivers of economic to rural business communities. involvement and support from growth in Indonesia. However, The main target of PDD program fintech as well as Telkomsel data from the Ministry of in 2019 were cooperatives, itself, so that ultimately it can Telecommunications shows that especially sharia based promote a more equitable digital only about 5% of villagers are cooperatives, which are known ecosystem throughout the using digital. Most villagers work as BMT (Baitul Maal wat Tamwil). country. in small medium enterprises in PDD held seminars, workshops sectors like agriculture, trading, and gave assistance for BMTs Throughout 2019, the Baktiku and home industries without on becoming agents of change Negeriku program succeeded using digital. for their members. In 2019, the in building Digital Centers at 18 PDD was introduced to bridge PDD program was successfully points distributed from the west various government programs: conducted in five areas: Bandung, end to the eastern end of the digital villages, patriot desa, one Surabaya, Jogjakarta, Medan archipelago, including locations village one product, and one and Karawang, attracting 80 in Maluku, NTT and Papua. This village one company. PDD has BMTs with 1,200 participants was done as a concrete effort created 5 pillars as a foundation comprised of BMT leaders, to build up local communities’ for success as Patriot Desa BMT members (SMEs) and digital awareness and bridge Digital: Change, Community, BMT partners (pesantren and the digital divide through Collaboration, Creative and BUMDES). In addition, special the construction of digital Capability. PDD programs were held for facilities and infrastructure. The young entrepreneurs. construction of Digital Centers PDD Launch and Kick Off were accompanied by social PDD was launched on April 1 activities such as mass beach 2019 in Gedung Sate, Bandung cleanups and planting mangroves, by the Governor of West Java as well as educational activities as a movement to transform for the community about using village business institutions into digital oriented enterprises by empowering digital agents of change. These are individuals or institutions who take the lead in

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ANNUAL REPORT 2019 Digital Leadership Seminar Gerai Digital based commercial companies / Digital Leadership Seminars were Gerai Digital are branchless products so as to produce young held to explain to participants the BMT outlets established by entrepreneurs with a digital importance of digital technology PDD to educate others to leadership mindset. for business success. These PDD shift from conventional to seminars presented speakers from digital transactions and grow Initiated by PTS together with local government, academicians their business through digital Telkomsel, Digital Creative and digital practitioners technology. The Gerai Digital Millennial (DCM) is a concrete from several industries. They pilot project successfully created initiative to increase the provided audiences with data, 50 Gerai Digital in 2019, headed competitiveness of Indonesian opportunities and successful by housewives who helped their MSMEs, especially in the creative stories to open up the audience’s husbands to increase family industry. Starting with the minds. income. signing of a Memorandum of Understanding (MoU) between Workshop: Digital Literacy and Digital Creative Millenials Telkomsel and PTS at the end Transformation Digital Creative Millennials of 2018, the DCM program was Through workshops, PDD aimed (DCM) is a business development successfully implemented in 2019 to increase the audience’s skills program (start-up and scale- in 5 cities in Indonesia: Jakarta, in building digital communities, up) that relies on digital Surabaya, Medan, Yogyakarta, and developing agents of change, transformation and collaboration Karawang. In accordance with the transforming from conventional designed to stimulate program’s aim to make millennial to digital transactions and entrepreneurship in the energetic entrepreneurs more competitive expanding business through youth / millennials segment. through digital transformation digital technology. Audiences also This program includes training and collaboration, DCM 2019 learned how to use digital tools and assistance to transform their and platforms, including Kasir conventional business into data- digital Telkomsel.

business craftsmen and transactions home industries

cities pcs sold item

creative entrepreneurs

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succeeded in involving more than 150 creative entrepreneurs The Gerai Digital pilot engaged in fashion & crafts which project successfully empowered more than 350 craftsmen and home industries created 50 Gerai Digital in in Indonesia with total business transactions reaching Rp 30 2019, headed by housewives billion per month. The digital transformation process was given who helped their husbands through seminars and workshops to DCM audiences in the 5 cities. to increase family income. The seminar had multiple target audiences, namely (1) fashion brand owners who have run transformation process so as to Digital Transformation Workshop businesses that are ready to scale be able to compete in today’s From the total participants of up, and (2) creative millennials technological era. the digital leadership seminar, or students who have ideas and more than 200 participants were are ready to run a product-based A very useful takeaway from chosen to participate in the business in the creative industry. this program initiative is that digital transformation workshop. the local brand owners realized In this workshop, participants Local Brand Gathering that to be able to compete and received material on supply chain Held in Jakarta, this event was be more efficient, they must management approach from both attended by more than 50 collaborate and focus on the core a theoretical and best practice local brand owners from the competencies of their respective perspective. The material in this fashion industry. Presentation companies / brands. workshop focused on business and discussion related to issues simulations in order to provide and challenges of business DIGITAL LEADERSHIP SEMINAR participants a taste of decision development in the era of sharing Seminars on digital leadership making in business. economy are the main topics. were held in 5 cities with Each brand owner also expressed a total of more than 1,000 Benefits and Impact of Creative their unique experiences participants consisting of: Millennials Digital Program in carrying out the digital local brand owners, individual The Digital Creative Millennial creative entrepreneurs, MSME Program focuses on developing entrepreneurs and students. MSMEs through digital In accordance with the Digital transformation and collaboration Creative Millennials program by building a digital ecosystem themed digital transformation and that can fulfill all businesses’ collaboration, the DCM seminar needs, especially businesses invited practitioners, academics, engaged in the product- and business people to share their based creative industry. With experiences with the audience the formation of this digital and provide guidance on how to ecosystem, each party can focus build a business properly right from the very start.

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ANNUAL REPORT 2019 on their core competencies. • Improved decision making for inventory value positions, and For example, a brand which every party in the supply chain vendor performance can be has design and marketing network by using previously evaluated properly. competencies can collaborate stored data. with partners who have other • Improving companies’ ability to This is a solution that can be very competencies such as managing meet customer needs with the helpful for the development of logistical activities and the ability to access data requests MSME businesses, as previously production process. Collaboration in real time, on time delivery information system tools could between stakeholders is easy and with minimal costs, as well only be used by businesses with simple because it is managed in as a controlled procurement large capital. an integrated digital platform. process. Therefore, several positive D. PHILANTHROPY benefits and impacts in total With the help of an integrated Disaster Handling System business management will be information system, business (TERRA) generated, including: activities can be controlled using Telkomsel Emergency Response • The supply chain becomes an operational dashboard to and Recovery Activity (TERRA) more connected, scalable ensure data transparency and fast is Telkomsel’s frontline disaster and faster. By changing access to information as shown in handling program, in line with their traditional supply chain the following examples: Telkomsel’s responsibility as strategy to digital, companies the largest cellular operator can improve customer Currently, business transactions in Indonesia to ensure good, relationships and achieve can be recorded properly in reliable communication networks better financial performance. real time so that key business in disaster areas which can parameters such as total sales, number of orders,

TERRA has many volunteers consisting of both internal Telkomsel employees and external parties. These volunteer employees have previously participated in basic rescue training including Water Rescue, Vertical Rescue, and Posko management.

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facilitate actions ranging from In 2019, TERRA carried out the i. To provide basic knowledge humanitarian and disaster following activities: of disaster management and response efforts to post-disaster concepts. rehabilitation and disaster TERRA – Technology-based ii. Socialization and application mitigation processes. TERRA Training of IT-based disaster mitigation Disaster response and mitigation facilities. TERRA has many volunteers in Indonesia is best directed iii. To establish a disaster response consisting of both internal at disaster prevention and community and standardize Telkomsel employees and disaster risk reduction (DRR). disaster management SOP. external parties. These volunteer This management has therefore employees have previously conducted IT-based TERRA The specific objectives of participated in basic rescue training programs in its CSR implementing IT-based training including Water Rescue, programs since 2017 so as to emergency response training are Vertical Rescue, and Posko produce effective and efficient as follows: management. Since its launch disaster management programs. i. Trainees are able to identify the in 2010, at least 500 employees TERRA has since been expanded potential for disasters in their have been trained and prepared to 10 regional Telkomsel areas, surrounding environment. to volunteer in the event of a where the field coordinators ii. Trainees are able to apply disaster. routinely participate in Focus the principles of disaster Group Discussions. TERRA management to their External Volunteers are volunteers is also expected to support surroundings. from nature lover groups, who the continuity of Telkomsel’s iii. Train participants to use are integrated into a partnership operations during disasters, when technology for effective so as to help provide solutions telecommunication services are disaster management. for Telkomsel when conducting essential for the acceleration iv. Improve communication disaster mitigation. of disaster recovery. Early and through practical digital-based appropriate handling of disaster solutions. Currently TERRA volunteers situations plays a very important are scattered throughout all of role in ensuring that any affected Telkomsel’s working areas. This production tools belonging to program has been ongoing since Telkomsel can function. The 2010 until the present. general purpose of implementing IT-based emergency response training based is as follows:

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ANNUAL REPORT 2019 MAPPER TRACKER SYSTEM 24 Tons Of Takjil Break- During this Ramadhan roadshow, - Disaster Management Fasting Date orphans were given assistance in Technology Since 2013, Telkomsel has always the form of school supplies, while Disaster mitigation is presently a given dates to mosques for those in poverty were assisted with national priority, with dedicated Ramadan in accordance with basic needs. Meanwhile, aid was response agencies established Telkomsel’s age. To welcome given to mosques and foundations at national and local levels. Ramadan 1440 Hijriyah, in its 24th to repair religious facilities and Currently, field updates are still year, Telkomsel therefore donated infrastructure. Not only that, entered manually, resulting in 24 tons of dates to 20 mosques in there was also a mosque clean- delayed responses due to delays various regions from the eastern up action involving Telkomsel in information. tip of Indonesia to its westernmost employees, iftar meals to be edge, to be enjoyed by the general shared with the community, BAIK Mapper Tracker is a map-based public as takjil when breaking Internet education (Responsible, geographic information system their fast. Safe, Inspirational and Creative) that functions as an information and BhayPlastik training (as part center which can visually show During the month of Ramadan, of socializing the community to disaster conditions and disaster people frequently visit mosques to reduce plastic waste) which was response efforts, becoming a worship and break their fast. The held in various areas in Indonesia. center for the latest updates mosques selected by Telkomsel and monitoring of member for distribution of these dates are Distribution Of Sacrificial movements. those that serve as major centers Animal Parcels – Idul Adha 2019 of religious activities in their On Idul Adha 10 Dzulhijjah 1440 This mobile information center region. Hijriyah Year 2019, Telkomsel can serve as a media center provided 751 sacrificial animals, at every disaster site as it Fast-Breaking With 5,000 consisting of 120 cows and enables the media to easily see Children And The Poor – RAFI 631 goats / sheep. In the spirit the areas affected by natural 2019 of Spreading Happiness, these disasters, as well as helping Telkomsel once again held a fast- sacrificial animals (qurban), which to direct volunteers providing breaking roadshow for a total of are a Telkomsel CSR (Corporate assistance, and providing photo 5,000 domestic children and poor Social Responsibility) activity, updates remotely. people in four cities in Indonesia, were delivered to more than namely Jakarta, Makassar, Medan 43,000 beneficiaries in 505 and Sidoarjo. Prioritizing the locations across various regions spirit of “Spreading Happiness”, of Indonesia. in addition to giving assistance to orphans and poor people, During Eid al-Adha in 2019, Telkomsel also provided assistance more than 43,000 sacrificial to 50 mosques and foundations animals (qurban) packages were by providing or repairing religious distributed by Telkomsel to facilities and infrastructure in those in need in various regions. various regions in Indonesia. Overall, the number of Telkomsel sacrificial animal (qurban) packages distributed this year has

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increased compared to last year, generated, Vestifarm won the The in line with Telkomsel’s expanded Telkomsel Next Evangelist 2017. Until now, operational areas and Telkomsel’s once again Telkomsel continues to support commitment to manifest its care this startup in order to deliver for the people of Indonesia. held a FAST- wider social impact in Indonesia. In this year’s qurban program, BREAKING Assistance For 5,000 Orphans Telkomsel also provides digital And Underprivileged Christmas offerings through the Telkomsel roadshow 2019 Ta’lim Assembly (MTT) working Welcoming the Christmas 2019, together with Vestifarm. Through for a total Telkomsel held an initiative to Vestifarm, Telkomsel employees bring happiness to communities, were also able to procure of 5,000 orphanages and social foundations sacrificial animals through the through the 2019 NARU online system and make payments domestic Roadshow. The program began with LinkAja’s digital payment. with an event at Telkom Landmark children and Tower, Jakarta, on November 29, In addition, the procurement of 2019. The 2019 NARU Roadshow, sacrificial animals through digital poor people which is part of Telkomsel’s can also be done by the wider corporate social responsibility community, especially LinkAja in four cities (CSR) program, provided users. LinkAja users can channel assistance to 2,500 people in the digital sacrificial animals in Indonesia need, 2,500 orphanage children, through the LinkAja Sharing and 40 places of worship or social feature on the LinkAja application. namely foundations throughout Indonesia. The sacrificial animals offered today are cows with prices listed Jakarta, The 2019 NARU Roadshow was on the application including Makassar, held in four cities in Indonesia, distribution, slaughtering, and namely Pekanbaru (5 December), reporting of sacrificial animals. Medan and Bogor (9 December), Malang (12 December) and Pontianak (19 Vestifarm is a startup at The Sidoarjo. December). During its course, NextDev Telkomsel in the field of the program ranged from giving agriculture and animal husbandry assistance to renovations/repairs that offers a profit-sharing system for foundations or places of between farmers or ranchers and worship, workshops, and creativity investors. Thus, investors can contests for children. In addition, help fund aquaculture projects. a number of Telkomsel employees When the harvest is complete, played and shopped with investors can enjoy the benefits orphan children. of the funds deposited through the profit sharing system. Thanks to the ideas and social impact

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DISCUSSION

DATA DATA

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DATA DATA

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ANNUAL REPORT 2019 GLOBAL AND INDONESIA as it also affected the global in 2019 margins for Data improved, MACROECONOMIC REVIEW economic growth, Indonesia’s boosting telecommunication economic growth may be adversely providers’ bottom line in Indonesia. Global growth continued to soften affected by the OC VID-19 which Simultaneously, Digital Business in 2019 due to international trade will restrain the domestic economic continued to accelerate supported tensions and other geopolitical growth outlook for 2020. In by 4G network roll out, as well by issues, as well as various natural response to this, the government the increasing number of digital disasters around the world. Towards launched an economic stimulus products and services available the end of the year, accommodative package consisting of fiscal and in Indonesia. monetary policy and fiscal easing in non-fiscal stimulus in order to boost some countries helped to prop up customer spending and the spread Telkomsel continued to strengthen growth, but not enough to boost of COVID-19. It is projected that its digital ecosystem and long term global expansion (International Indonesia’s economic growth will competitive system through various Monetary Fund, World Economic regain upward momentum in 2021 programs and initiatives, including Outlook Update – January 2020). and strengthen in the medium term. adding more 4G BTS to its network, Global commodity prices also delivering innovative digital products weakened overall. Supported by Data traffic growth, and services including e-games Indonesia’s telecommunications and video streaming, and improving Despite these conditions, Indonesia industry is at a point where Data distribution as well as customer continued to grow well above the revenue growth has outpaced service. In parallel, Telkomsel global average, recording GDP the Legacy revenue decline. The supported the government’s target growth of 5.02%, stable compared mobile Data revenue growth will of bridging the digital divide by with 5.17% in the previous year be driven by continued strength in supporting Data coverage in remote (BPS data). The economy moreover Data traffic growth (as mobile video areas, and also supported the continued to exhibit sound consumption picks up), rather than government’s ‘Making Indonesia 4.0’ macroeconomic fundamentals by mobile Data yield improvement. goal by driving innovation in IoT and with inflation well under control, other related technologies. a strengthening rupiah, a still BUSINESS REVIEW AND tolerable state budget deficit, and INDUSTRY OUTLOOK Moving forward, the stable household spending at 5.04% telecommunications industry in compared with 5.05% in 2018. The Indonesian telecommunications Indonesia appears poised for growth. industry returned to growth in 2019 The nationwide improvement On the back of heightened global after shrinking in 2018 due to the in 4G BTS network quality has uncertainty and undeniable impact government SIM card registration not only improved customer of outbreak in Corona virus or exercise carried out in 2018. experience, but also encouraged COVID-19 to Indonesian economy Although the transition from higher- the growth of new services that margin Legacy to Data services continued to put pressure on pricing,

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could potentially increase operator growth opportunities for Data & OPERATIONAL RESULTS revenue. Meanwhile, capex spending Digital Services as the future of the for 4G expected to decrease as telecommunications industry. CUSTOMER BASE most of the nation already enjoys As the end of 2019, Telkomsel served coverage, which should help boost This has been supported by the 171.1 million subscribers nationwide, operators’ returns especially as government prepaid SIM registration an increase of 5.0% YoY. Growth was Data usage increases. According to policy's ongoing natural cleansing driven among others by effective GSMA intelligence, the percentage effect, which has resulted in a marketing campaigns, with customer of cellular dominated by 4G in better-quality customer base with retention initiatives supported by Indonesia is expected to rise higher numbers of real active prepaid SIM registration that led to from 44% in 2018 to 79% in 2025, subscribers and higher ARPU, as lower churn and shifting customer presenting telecommunications well as more efficient SIM card behaviour, as well as securing providers like Telkomsel with production costs. It will also have and growing the youth segment. significant opportunities for growth. positive long-term impact and It is also aligned with Telkomsel's support the emergence of healthier transformation initiative, which OVERVIEW OF 2019 competition in the industry. prioritises improved customer PERFORMANCE experience and usage by providing In line with our philosophy to always best quality Digital connectivity with Telkomsel experienced positive lead in network supply both on and rich content, towards becoming a performance during the year with outside Java, we maintained and Digital Telco Company & achieving Revenue, EBITDA and Net Income strengthened our network leadership Data-centric leadership. at Rp91.1 trillion (+2.1% YoY), Rp49.2 by deploying 23,162 new BTS in trillion (+3.7% YoY) and Rp25.8 2019, with all which were 4G-based. DATA DRIVERS trillion (+1.0% YoY) respectively, Our Data traffic increased by 53.6% At the end of December 2019, supported by transformation YoY to 6,715,227 TB supported Telkomsel Data users reached 110.3 initiatives in Digital Business as the by higher Data Users numbers, million (+3.5% YoY), representing engine of growth along with Cost 3G/4G capable device growth and around 64.4% of the Company’s Leadership initiatives to effectively increasing Data usage per user. At total subscribers with 119.3 million manage operational expenses. As the end of 2019, Telkomsel’s on-air 3G/4G capable devices (+11.5% a result, EBITDA Margin improved BTS on-air reached 212,235 units YoY & 69.7% penetration). The from 53.2% in 2018 to 54.0%. The (+12.2% YoY), 76.3% of which were higher penetration of Data users, current dynamics of the market have 3G/4G BTS. along with the availability of various corroborated Telkomsel’s decision to applications, is critical to increasing lead the industry shift in a healthier Data traffic. As end of 2019, direction, one that creates better Telkomsel Data user consumption was promising at 5.2 GB per Data User, an increase of +54.7% compared to the previous year, in alignment with Telkomsel’s strategy to increase Data penetration.

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ANNUAL REPORT 2019 ARPU the last year, driven by a 22.3% YoY increase in Data revenue and a 29.0% YoY As we shift from the Legacy business increase in Digital Services revenue. to Digital Business, double-digit growth in our Digital ARPU has been Postpaid revenue increased by 2.7% YoY to Rp8,229 billion while Prepaid able to compensate for the decline revenue increased by 3.0% YoY to Rp77,574 billion as customers shifted from of Legacy ARPU. This is reflected in consuming starter packs to topping up existing subscriptions in the aftermath our blended ARPU growth, which of the SIM card registration program. As a result, active customers became was mainly due to higher Data user more productive. productivity as well as strong growth in Data traffic. Interconnection and International Roaming revenues decreased by 22.2% YoY to Rp3,689 billion, mainly due to declining Voice and SMS traffic from other NETWORK DEVELOPMENT local operators as an impact of substitute services from OTT applications. Our focus on Digital Business was reflected in our network In billion (Rp) 2019 2018 GROWTH deployment. To support our Digital Business, we continued to Revenue by Product accelerate our network development Postpaid 8,229 8,009 2.7% this year with aggressive 4G BTS Prepaid 77,574 75,306 3.0% deployment using on-demand basis strategy, taking into account 4G Interconnection & International 3,689 4,740 -22.2% handset penetration and the level of Roaming demand in Broadband cities. To date Others 1,597 1,191 34.0% we have deployed 79,834 4G BTS. Total 91,088 89,246 2.1% The network roll out increased the total number of on-air BTS at the VOICE AND SMS end of 2019, of which 161,938 units In line with the natural transition of Legacy to Data and impact of OTT were 3G/4G BTS (+16.7% YoY). services cannibalization, Telkomsel’s Legacy business slowed in 2019, which was expected. Voice revenue decreased by 18.5% YoY to Rp26,790 billion and FINANCIAL RESULTS Voice traffic declined by 13.7% YoY, while SMS revenue declined by 39.8% YoY to Rp3,973 billion and SMS traffic declined by 30.1% YoY. The downtrend REVENUE in the Legacy business was managed by offering better value package and In 2019, Telkomsel experienced a attractive Combo (Voice & Data) packages, using a personalised marketing positive trajectory, closing the year approach. with positive performance. Digital Business revenue grew by 23.1% over DIGITAL BUSINESS The Digital Business segment, which remained the engine of growth, focused on maintaining its leading network position in 3G and 4G infrastructure. This segment recorded strong performance with 23.1% YoY revenue growth to Rp58,237 billion, substantially increasing its contribution to total revenue

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from 53.0% last year to 63.9%. As Services and innovations with key products and services such as Digital the Legacy revenue base becomes Lifestyle, Mobile Financial Services, Digital Advertising, Digital Mobile Banking smaller and Data & Digital Services and Internet of Things (IoT). revenue growth has picked up on the back of strong Data traffic, In billion (Rp) 2019 2018 GROWTH Telkomsel has been able to grow its Digital Business and face the natural Revenue by Service erosion of Legacy by providing Voice 26,790 32,858 -18.5% better growth opportunities for SMS 3,973 6,599 -39.8% mobile revenue overall. This in turn has enabled Telkomsel to lead Sales Discounts & Other Revenue (2,001) (2,672) -25.1% the industry shift towards more IC & IR 3,689 4,740 -22.2% rational competition by setting Others 401 422 -5.0% healthier prices. Data 50,550 41,339 22.3% Revenue from Data grew by 22.3% Digital Services 7,687 5,960 29.0% YoY to Rp50,550 billion, driven by Total 91,088 89,246 2.1% 110.3 mn Data users. The number of Data users increased, supported EXPENSES by a rise in smartphone penetration from 65.7% last year to 69.7%, and Data payloads experienced healthy In billion (Rp) 2019 2018 GROWTH growth of 53.6% YoY to 6,715,227 TB. Expenses Digital Services also recorded strong growth of 29.0% YoY to Rp7,687 Operation & Maintenance 25,938 25,059 3.5% billion, becoming the main driver of Depreciation & Amortization 14,227 13,480 5.5% Telkomsel’s transformation from a Cost of Services 4,325 4,063 6.4% Telco Company to a Leading Digital Telco Company. Interconnection & International 2,439 3,191 -23.6% Roaming

A number of investments and key Personnel 4,846 4,074 19.0% initiatives have been established General & Administration 1,860 2,072 -10.2% to accelerate the growth of Digital Marketing 2,462 3,347 -26.4% Services, in line with Telkomsel’s mission to serve customers’ digital Other – net 37 (579) 106.4% preferences and build a digital Total 56,134 54,707 2.6% Indonesia. Telkomsel therefore drove continuous scale up of its Digital

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ANNUAL REPORT 2019 In FY 2019, total expenses including depreciation and amortization increased by 2.6% YoY to Rp56,134 billion. The main driver of growth were Operational As of & Maintenance expenses related to the Company’s initiative to build more December BTS infrastructure towards strengthening 4G LTE services and maximizing Data service quality. The number of BTS increased by 12.2% YoY. However, 31, 2019, all other expense components were effectively managed as reflected by the decrease in General Administration as well as Marketing Expenses. Total Assets EBITDA AND NET INCOME slightly EBITDA and Net Income respectively increased by 3.7% YoY to Rp49,218 billion and 1.0% YoY to Rp25,799 billion, while EBITDA margin increased increased slightly by 0.9ppt to 54.0% and Net Income margin decreased slightly by -0.3ppt to 28.3%. by 0.1% to

BALANCE SHEET Rp82,730

In billion (Rp) 2019 2018 GROWTH billion, Total Statement of Financial Position Liabilities Current Assets 18,657 16,836 10.8% increased Non-Current Assets 64,073 65,814 -2.6% Total Assets 82,730 82,650 0.1% by 6.4% to Current Liabilities 20,892 20,737 0.7% Rp33,521 Non-Current Liabilities 12,629 10,767 17.3% Equity 49,209 51,147 -3.8% billion and Total Liabilities & Stockholders 82,730 82,650 0.1% Total Equity Equity decreased As of December 31, 2019, Total Assets slightly increased by 0.1% to Rp82,730 billion, Total Liabilities increased by 6.4% to Rp33,521 billion and Total Equity by 3.8% to decreased by 3.8% to Rp49,209 billion. Rp49,209 • Current Assets increased 10.8% to Rp18,657 billion, mainly due to increase in cash and cash Equivalents. billion.

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• Non-current Assets decreased 2.6% to Rp64,073 billion, mainly due to Net cash decrease in Fixed Assets. USED IN • Current Liabilities increased 0.7% to Rp20,892 billion, mainly due to increase in taxes payable and unearned revenue. financing • Non-current Liabilities increased 17.3% to Rp12,629 billion, mainly due to increase in medium-term loans net of current maturities. activities • Total Equity decreased by 3.8% to Rp49,209 billion, mainly due to decrease in retained earnings as the company distributed dividend in the (excluding current period. DIVIDEND) CASH FLOW decreased In billion (Rp) 2019 2018 GROWTH to Rp439 Cash Flow Cash Flow from Operating 41,478 36,910 12.4% billion as Activities the company Cash Flow for Investing Activities (13,448) (16,095) -16.4% Cash Flow from Financing Activities 439 2,998 -85.4% has repaid Dividend Payment (26,382) (27,865) -5.3% Net Increase/(Decrease) in Cash & 2,087 (4,051) 151.5% loans. Cash Equivalents Cash & Cash Equivalents at 6,497 10,548 -38.4% Beginning of Year Cash & Cash Equivalents at End of 8,583 6,497 32.1% Year

Net cash generated from operations in December 2019 increased 12.4% YoY to Rp41,478 billion mainly contributed by higher cash receipts from operational activities. Cash flow used in investment activities decreased 16.4% YoY to Rp13,448 billion mainly due to lower payment of infrastructure spending as our initiatives in capex efficiency. Net cash used in financing activities (excluding dividend) decreased to Rp439 billion as the company has repaid loans.

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ANNUAL REPORT 2019 DEBT PROFILE As of December 31, 2019, Telkomsel’s total outstanding loans amounted to Telkomsel Rp6,000 billion from revolving credit facilities, of which 50% matures in 2021 has excellent and 50% in 2023. As of December 31, 2019, Telkomsel Debt to Equity Ratio (DER) was 18.5%. credit

Description LOCAL TOTAL quality and CURRENCY EQUIVALENT (Rp bn) (Rp bn) is one of the % of Total Loan 100% 100% highest rated Loan per Maturity 2021 3,000.0 3,000.0 companies in 2023 3,000.0 3,000.0 Indonesia. Total 6,000.0 6,000.0

Telkomsel is under obligation to maintain several financial covenants related to its loans/debts. As of December 31, 2019, the covenants were as follows:

Covenants To Be Maintained REQUIRED ACTUAL

EBITDA to Debt Service ≥ 1.25 5.29 Debt to Tangible Net Worth ≤ 2.00 0.14

CREDIT RATINGS Telkomsel has excellent credit quality and is one of the highest rated companies in Indonesia. Telkomsel’s latest ratings issued by Fitch Ratings Indonesia are as follows:

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PT Telekomunikasi Selular MANAGEMENT DISCUSSION & ANALYSIS

RATINGS OUTLOOK ISSUED DATE

Fitch Ratings Indonesia AAA Stable December 3, (National 2019 Long-Term)

FINANCIAL RATIOS Telkomsel’s strong financial profile was reflected in several key financial ratios, as follows:

2019 2018 YoY

Solvability

Debt* to Equity (%) 18.5 16.9 1.6ppt Debt* to EBITDA (Times) 0.21 0.25 -14.6%

*) Debt includes Obligations under finance lease - net of current maturities.

2019 2018 YoY

Profitability

Return on Assets 31.2% 30.3% 0.9ppt Return on Equity 51.4% 48.5% 2.9ppt

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ANNUAL REPORT 2019 This Annual Report including the accompanying consolidated financial statements and related financial information for the year ended December 31, 2019 was authoritatively signed by members of the Board of Commissioners and the Board of Directors of PT Telekomunikasi Selular.

Jakarta, May 2020

BOARD OF COMMISSIONERS

Ririek Adriansyah President Commissioner

Harry M. Zen Nanang Pamuji M. Yose Rizal Commissioner Commissioner Commissioner

Paul Dominic O’Sullivan Yuen Kuan Moon Alex J. Sinaga Commissioner Commissioner President Commissioner (served until May 2019)

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PT Telekomunikasi Selular BOARD OF DIRECTORS

Setyanto Hantoro President Director

Ririn Widaryani Heri Supriadi FM Venusiana R Rachel Goh Director of Sales Director of Finance Director of Network Director of Marketing

Bharat Alva Edward Ying Siew Heng Irfan A. Tachrir Director of IT Director of Planning & Director of Human Transformation Capital Management

Emma Sri Martini Sukardi Silalahi Bob Apriawan Iskriono Windiarjanto President Director Director of Sales Director of Network Director of Network (served until January 2020) (served until May 2019) (served until May 2019) (served until January 2020)

Alistair Johnston Montgomery Hong Director of Marketing Director of IT (served until June 2019) (served until May 2019)

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ANNUAL REPORT 2019

3G 3rd Generation of wireless mobile ICT Information and Communication telecommunications technology Technology 4G 4th Generation of broadband cellular IoT Internet of Things network technology IT Information Technology APEC Asia Pacific Economic Cooperation LBA Location Based Advertising API Application Programming Interface LTE Long Term Evolution ARPU Average Revenue Per User M2M Machine to Machine ATM Automated Teller Machine MHz Megahertz BTS Base Transceiver Station MFS Mobile Financial Services Capex Capital Expenditure MMS Multimedia Messaging Service CBTA Conditional Business Transfer Agreement MoU Minute of Usage CFMP Capital Expenditure, Financing, and Management Process OTT Over The Top COMBAT Compact Mobile Base Station SIM Subscriber Identity Module

CSR Corporate Social Responsibility SME Small Medium Enterprise

CTP Customer Touch Points SMS Short Messaging Service

DNA Device, Network, Applications SOA Sarbanes–Oxley Act

EBITDA Earning Before Interest, Tax, TAU Telkomsel Android United Depreciation, and Amortization TERRA Telkomsel Emergency Response and Fintech Financial Technology Recovery Activity GB Gigabyte USO Universal Service Obligation

GCG Good Corporate Governance USSD Unstructured Supplementary Service Data GHz Gigahertz VAS Value Added Service GPRS General Packet Radio Service WAP Wireless Application Protocol GSM Global System for Mobile communication HCM Human Capital Management

HSDPA High Speed Downlink Packet Access

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ANNUAL REPORT 2019 REGION NAME ADDRESS NORTH SUMATERA GraPARI BALIGE Jl. SM. Raja No. 70C, Balige GraPARI BANDA ACEH Jl. Tgk. H. M. Daud Beureueh No. 23 Banda Aceh GraPARI BINJAI Jl. Soekarno Hatta No. 14 Binjai, Binjai Super Mall Upper Ground Ground, 01-03. Binjai GraPARI BIREUN Jln. Sultan no 17 Desa Bireuen Meunasah Blang,Kec Kota Juang Kab Bireuen 24211 GraPARI CENTER POINT Mall Center Point, Sektor 17, lt 1 Jl Jawa no 8 Medan (MALL.) GraPARI GUNUNG SITOLI Jl. Muhamad Hatta No.2 Kel Pasar Gunungsitoli, Kec. Gunung Sitoli, Kab Nias-22813 GraPARI KABANJAHE Jl. Veteran No. 76 Kabanjahe GraPARI KAMPUNG Jl. Gatot Subroto Km. 7.8 Blok A No. 9 Comp. Makro Medan Sunggal LALANG GraPARI KISARAN Jl. HOS. Cokroaminoto No 30,32 Kel.Kisaran Kota Lk. IV Kec. Kisaran Barat GraPARI KOTA PINANG Jl. Bukit Kotapinang Kel. Kotapinang Kec. Kotapinang Kab. Labuhanbatu Selatan GraPARI KRAKATAU Jl. Gunung Krakatau No.191 A Medan GraPARI KUALANAMU Terminal Kedatangan lt. 1, Bandar Udara Kualanamu Medan GraPARI LANGSA Jl. No.4 Langsa GraPARI LHOKSEUMAWE Jl. Tgk. Chik Ditiro Desa Lancang Garam Kec. Banda Sakti No. 1 GraPARI LUBUK PAKAM Jl. Dr. No. 7 Lubuk Pakam, Deli Serdang GraPARI MEDAN FAIR Jl. Gatot Subroto Plaza Medan Fair Lt 1 No 52-53 Medan PLAZA (MALL.) GraPARI MEDAN Jl.Tritura , Ruko Titi Kuning Mas B-3, Medan KARYAJASA GraPARI MEDAN SUTOMO Jl. Sutomo Ujung No. 7/9, Kel. Gaharu, Kec. Medan Timur - Medan 20235 GraPARI MEULABOH Jl. Nasional Ujung Baroh, Kec.Johan Pahlawan, Meulaboh, Aceh Barat GraPARI PADANG Jl. SM Raja No. 212 ABC, Kel. Sitamiang Baru, Kec. Padang Sidempuan Selatan SIDEMPUAN GraPARI PANYABUNGAN Jl.Willem Iskandar No. 117 , Panyabungan Kota, Kab. Mandailing Natal, Sumatera Utara 22913 GraPARI PLAZA MILLENIUM Jl. Kapten Muslim NO 111 Plaza Millenium Lt Dasar No 4-5 Medan (MALL.) GraPARI RANTAU PRAPAT Jl. Ahmad Yani No.31 Rantau Prapat GraPARI RING ROAD CITY Level 2, No. 02 Jl. Gagak Hitam No. 28 Medan – 20122 WALKS MEDAN (MALL.) GraPARI SABANG JL . OENTOENG SUROPATI KEL. KOTA ATAS KEC. SUKAKARYA SABANG 23512 GraPARI SETUI Jl. NO.232, Kelurahan Setui, Kec. Baiturahman, Banda Aceh 23243 GraPARI SIBOLGA Jl. No.33, Sibolga

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PT Telekomunikasi Selular REGION NAME ADDRESS GraPARI SIGLI Jl. Iskandar Muda No.32 Blok Bengkel Kec Kota Sigli Kab Pidie-Sigli Aceh. Telp / Fax : 0653 201010 GraPARI STABAT Jl. Jend. Sudirman No. 14 A, Kelurahan Perdamaian, Stabat GraPARI TAKENGON Jl. Lebee Kadir No.243, Takengon, Blang Kolak, Bebesan, Aceh Tengah GraPARI TANJUNG BALAI Jl.Teuku Umar No.120 Tanjung Balai 21312 ASAHAN GraPARI TANJUNG Jl. Medan Km.17.5, Komp. Suzuya Plaza Blok A6, Tanjung Morawa, Deli Serdang. MORAWA GraPARI TARUTUNG Jl. Mayjend DI Panjaitan No. 143, Kec. Tarutung Kab. Tapanuli utara-22412 GraPARI TEBING TINGGI Jl. Jend. Sudirman No. 405F Tebing Tinggi GraPARI TELKOM GROUP Jl. W. R. Supratman No.11, Proklamasi, Siantar Bar., Kota Pematang Siantar, Sumatera PEMATANG SIANTAR Utara 21146 GraPARI TELKOM GROUP Graha Merah Putih Lt. 1 Jl. Putri Hijau No.1 Medan, 20111 PUTRI HIJAU MEDAN GraPARI WAHIDIN Jl. Dr. Wahidin No. 46 / 4-AA Medan 20211

CENTRAL SUMATERA GraPARI BAGAN BATU Jl. Jendral Sudirman No.745, Bagan Batu, Kec.Bagan Sinembah, Kab. Rokan Hilir 28992 GraPARI Jl. DI. Panjaitan No 88 c Depan plasa telkom bangkinang, Kab-Kampar-28411 GraPARI BATAM CENTER Jl. Engku Putri Batam Centre Batam GraPARI BATAM PENUIN Jl. Pembangunan Nusa Indah Komplek Penuin No 3-4 Batu Selicin Lubuk Baja Batam GraPARI BATU SANGKAR Jln ahmad yani pincuran 7 kecamatan lima kaum batusangkar, 27211 kab tanah datar sumatera barat GraPARI Jl. A Yani Depan Kantor Bupati, Bengkalis 28712 GraPARI BOTANIA Komp. Pertokoan Botania Garden Blok B12 No. 2B Batam GraPARI BUKIT TINGGI JL ahmad Karim No 8c, Kel. Benteng Pasar Atas, Kec. Guguk Panjang, Bukittinggi 26100 GraPARI DABO Jl. no.17A, Kec.singkep kab.lingga, Dabo singkep 29871 GraPARI DUMAI Jl. Jendral Sudirman No.153 Riau GraPARI DURI Jl. Hangtuah No. 10 RT 02 RW 10 kel. Duri Barat Kec. Mandau Duri Riau 28884. Tlp 0765- 594168 GraPARI LUBUK ALUNG JL.Raya Padang Bukittinggi Pasar Lubuk Alung Padang Pariaman Sumatera Barat 25581. GraPARI NAGOYA HILL Ruko Nagoya Hill Mall Blok O No. 12B-15, Kec. Lubuk Baja, Nagoya Batam, Kep. Riau 29432 (MALL.) GraPARI NATUNA Jl. datok kaya wan mohd. benteng no.116, kec. bunguran timur, kota ranai, kab natuna GraPARI PADANG Jl. Khatib Sulaiman No. 51 Padang GraPARI PANBILL (MALL.) Lt. Dasar KD 2.Panbil Mall muka kuning, batam 29433 GraPARI PANGKALAN Jl. Lintas Timur no 11 samping BPJS kesehatan pasar baru pangkalan kerinci kab. KERINCI Pelalawan Prov Riau 28300 GraPARI PASAMAN Jl. Jend. Soedirman Simpang Empat selatan Kec. Pasaman Kab. Pasaman Barat Sumatera Barat-26566

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ANNUAL REPORT 2019 REGION NAME ADDRESS GraPARI PAYAKUMBUH Jl soekarno Hatta no 37-39 kelurahan padang tangah kecamatan payakumbuh barat Sumatera Barat GraPARI PEKANBARU Jl. Jend Sudirman No 199 Pekanbaru GraPARI PEKANBARU Jl. Hr Subrantas km 12,5 (samping riau pos) Panam PANAM GraPARI PERAWANG Jl. Raya Perawang No. 79 KM. 6 kel. Perawang kec. Tualang kab. Siak-Riau 28772 GraPARI Jln. Diponegoro No. 107 C, Kab. Kepulauan Meranti, Selatpanjang - 28753, Riau GraPARI SIMPANG ARU Jl.Veteran no 69 BC sumbar 25114 GraPARI SKA PEKANBARU Mall SKA Pekanbaru Lt.2 No.23-26, Jalan Soekarno Hatta, Pekanbaru, Riau 28292 (MALL.) GraPARI SOLOK Jl. Cindur Mato No. 06 Kel. PPA Kec. Tj Harapan, Kota Solok-2732 GraPARI SUNGAI RUMBAI Jl. Lintas Sumatera (depan lapangan sepak bola Sungai Rumbai), Kec. Sungai Rumbai, Kab. Dharmasraya GraPARI TANJUNG BALAI Komplek Karimun Centre Jl. A Yani no. 9-10 Kolong Tg Balai Karimun KARIMUN GraPARI TANJUNG Jl. Basuki Rachmat No. 9 Tanjung Pinang PINANG GraPARI TANJUNG UBAN Jl. Permaisuri No 2 Tanjung Uban (depan wisma pesona) Kab. Bintan-29152 GraPARI Jl. Merdeka no. 18c rt/rw 01/01 kel.pasar taluk,kec. Kuantan tengah,kab.kuantan singingi. GraPARI TEMBILAHAN Jl M Boya RT 004 RW 001 Tembilahan GraPARI BAGAN SIAPIAPI JL. Pahlawan no. 74 Rokan Hilir Telp/fax 0767 23443 GraPARI Jl. Narasinga No. 04 Kambesko (Depan Kantor Pos), Rengat , Inhu-Riau-29300 Tlp. 0769- 323380 GraPARI TANJUNG BATU Jl. Jend. Sudirman No. 216 RT 02/03 , Tanjung Batu Kota, Tanjung Batu Kundur 29662, Kepri-Indonesia

SOUTH SUMATERA GraPARI ALANG ALANG Jl. Raya Palembang-Betung KM 15 No. 10, Kel. Sukajadi, Kec. Talang Kelapa Banyuasin LEBAR 30716 Alang-alang Lebar GraPARI BANDAR JAYA Jl. Proklamator raya no. 71 c Bandar jaya terbanggi besar lampung tengah 34162 GraPARI BATU RAJA Jl. Ahmad Yani No. 84, kemalaraja Atas-Pasar Baru, Baturaja GraPARI BELITANG Jl. Jendral Sudirman Komp. Ruko Belitang Mas Gumawang BK. 10 OKU Timur Sumsel 32382 GraPARI BELITUNG Jl Jend Sudirman No 28 D-E Pangkal Lalang, Tanjung Pandan GraPARI BENGKULU Jl. Kapten Tendean No.86 Km.6,5 Bengkulu GraPARI BETUNG Jl. Palembang-Betung No.76 RT.003/001 LK.I Kel.Betung Kec.Betung Banyuasin 30758 GraPARI CURUP Jl. M.Hasan no.61 (samping pasar bang mego) Kel.Pasar Tengah. Curup-Bengkulu

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PT Telekomunikasi Selular REGION NAME ADDRESS GraPARI INDRALAYA Jl. Lintas Timur Palembang-Kayuagung Km. 36 Komplek Ruko TPI Blok B1, Indralaya Ogan Ilir Sumsel GraPARI JAMBI Jl.HM Yusuf Singadekane No.09 Telanaipura, Jambi. GraPARI KALIANDA Jl. Kusuma Bangsa no.88B Kalianda Lampung Selatan 35513 GraPARI KAYU AGUNG Jl. Letnan Muchtar Saleh Blok A No. 2 Ogan Komering Ilir, Sumsel GraPARI KEDATON Jl. Teuku Umar no.43c Kedaton Bandar Lampung 35147 GraPARI KOTABUMI Jl. Jend. Sudirman No.414, Kotabumi, Kel. Tg Aman, Kec. Kotabumi Selatan, Kab. Lampung Utara GraPARI KUALA TUNGKAL Jl. no. 30B Kuala Tungkal GraPARI LAHAT Jl. Kolonel Burlian No.182 Talang Kapuk Kelurahan Pasar Lama Lahat Sumsel 31413 GraPARI LAMPUNG Jl. Pangeran Antasari. Komp. Villa Citra Blok RE I-III Lantai 2 GraPARI LUBUK LINGGAU Jl. No. 13 A, RT. 04, Kelurahan Taba Jemekeh, Kecamatan Lubuk Linggau Timur GraPARI MANNA Jl. Letnan Tukiran No. 46 RT/RW : 002/000 Kel. Pasar Baru, Kec. Kota Manna Bengkulu Selatan 38513 GraPARI MDP PALEMBANG Gedung MDP Lt.2, Jl. Jend. Sudirman KM 4(simpang POLDA ), Palembang 30128 (MALL.) GraPARI MERANGIN Jl. Jend. Sudirman Lintas Sumatera KM 3 Kec. Nalotantan Kel. Sungai Ulak, Merangin- Jambi 37300 GraPARI METRO LAMPUNG Jl. Jendral Sudirman No. 282 Metro Lampung GraPARI MUARA BUNGO Jl. Jendral Sudirman No 76 Kelurahan Pasir Putih, Muara Bungo GraPARI MUARA ENIM Jl. Jendral Sudirman Talang Jawa Atas Kel.Pasar III Kab.Muara Enim 31315 (Samping Bank BRI) GraPARI NATAR Jl. Raya Natar No 78E, Desa Merak Batin, Kec. Natar, Kota Lampung Selatan, Provinsi Lampung, Kode Pos 35362 GraPARI PALEMBANG Jl.POM IX, Palembang icon Rt.30,RW.09 Lorok Pakjo Ilir Barat I, Palembang 30137 ICON (MALL.) GraPARI PALEMBANG Jl. MP.Mangkunegara No.2 RT.40 RW.017 Perumnas Sako Kenten, Kel.8 Ilir Kec.Ilir Timur II KENTEN Palembang 30163 GraPARI PALEMBANG Komp. Ruko Palembang Square Blok R 95 Jl. POM IX Palembang SQUARE (MALL.) GraPARI PRABUMULIH Jl. Jend. Sudirman No.2 (samping Jati Jepara) Kel.Muara Dua Kec.Prabumulih Timur GraPARI PRINGSEWU Jl. Ahmad Yani No 188AB Pringsewu 35373 GraPARI RADEN INTAN Jl. Raden Intan no.57A Kel.Enggal Kec.Enggal Bandar Lampung GraPARI RIMBO BUJANG Jl. Pahlawan Unit 2 (depan Polsek) Kel.Wirotho Agung Kec.Rimbo Bujang Kab.Tebo. Jambi 37553 GraPARI SAROLANGUN Jl. Lintas Sumatera KM.1, Kel. Augading, Simpang Raya RT.08 No. 2, Kab. Sarolangun, Jambi

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ANNUAL REPORT 2019 REGION NAME ADDRESS GraPARI SEBRANG ULU Jl. Ahmad Yani No.30 RT.20 RW.01 Kel.13 Ulu Kec.Seberang Ulu II. Palembang 30263 GraPARI SEKAYU Jl. Kol Wahid Udin No.559D Ruko Sejahtera Kec.Sekayu Kab.Musi Banyuasin 30711 GraPARI SRIBAWONO Jl. Jend Sudirman no.16A Kel.Srimenanti Kec.Bandar Sribawono Lampung Timur 34199 GraPARI SUNGAI LIAT Jl. Jend. Sudirman, Ruko Permata Indah Blok C No.1, kel. Sungai Liat, kec. Sungai Liat, Kab. Bangka 33211 GraPARI SUNGAI PENUH Jl. Jendral Sudirman No.88A Amar Sakti Kel.Pondok Tinggi Kota Sungai Penuh 37114 GraPARI TELKOM GROUP Jl. Jalan Rustam Effendi no 3. , Bangka PANGKAL PINANG GraPARI TELKOM GROUP 20 Ilir D. III, Ilir Timur I, Palembang City, SUDIRMAN PALEMBANG GraPARI TELUK BETUNG Jl. Laksamana Malahayati No.103 Kel.Kangkung Kec.Teluk Betung Selatan Bandar Lampung 35224 GraPARI TULANG BAWANG Jl. Lintas Timur Unit 2 Kp. DWT Jaya Kec.Banjar Agung Kab.Tulang Bawang Prov.Lampung 34595 GraPARI WTC JAMBI WTC Batanghari Jambi, Jl. Sultan Thaha No.17, Ps. Jambi, Kota Jambi, Jambi 36123 (MALL.)

WESTERN GraPARI BALARAJA Jl. Raya Serang KM.24 No 88 Balaraja (depan PT. Darma Polimental) 100 M dari Pintu Tol JABOTABEK Balaraja Barat (021) 29015521 GraPARI BINTARO Mall Bintaro Jaya Xchange,CBD Bintaro Jaya Sektor VII Lantai G No.121 Tangerang Selatan EXCHANGE (MALL.) 15227 GraPARI CIKUPA Ruko Belgie Blok B. 05B, No. 1, Citra Raya Square II Perumahan Citra Raya Cikupa, Jl. Raya Serang KM 14.7 Tangerang GraPARI CILEGON Graha Sucofindo Lt.1, Jl. Jendral A. Yani No.106 Cilegon 42426 GraPARI CIPUTAT Jl. No. 71 D, Ciputat - Tangerang Selatan GraPARI LABUAN Jl. Perintis Kemerdekaan No.24 C-D Desa Teluk Kec.Labuan Kab.Pandeglang 42264 GraPARI PANDEGLANG Jl.Lapangan Sukarela No.2E. Kadu Pandak Pandeglang 42213 GraPARI RANGKASBITUNG Ruko Rabinza Jl.Rt. Hardiwinangun Blok A.No.15 Kel.MC Timur Kec.Rangkasbitung GraPARI SERANG (MALL.) Mall of Serang (MOS) lt. 1 Jl. Lingkar Kemang, Kotabaru Panancangan, Cipocok Jaya Serang 42112 - GraPARI SUMMARECON Mall Summarecon Serpong 2 lt. Unit 2 F-239 Tangerang Banten SERPONG (MALL.) GraPARI SUPERMALL Supermall Karawaci e-Center, Lt. LG Blok A5/4-A5/7 Jl. Boulevard Diponegoro, Tangerang KARAWACI (MALL.)

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PT Telekomunikasi Selular REGION NAME ADDRESS GraPARI TANGERANG CITY Mall Tangerang City Lt.LG Blok C.61 Jl. Jend Sudirman Tangerang Selatan (MALL.) GraPARI TELKOM GROUP Graha Telekomunikasi Lt.Dasar Jl Raya Serpong Sektor IV BSD Tangerang 15322 BSD GraPARI TERMINAL 3 Bandara Soekarno-Hatta Terminal 3, Gate Kedatangan 5 Lt. GF 19120 Jl. Pajang, BANDARA SOETA Kecamatan Tangerang Kota - Tangerang

CENTRAL JAKARTA GraPARI AMBASSADOR Mall Ambassador Lt. 3 No.1 , Jl. Prof.Dr. Satrio, Jakarta Selatan (MALL.) GraPARI BASSURA CITY Lantai 1, Jl No.1A Rt.008 Rw.010 Jatinegara, Cipinang Besar Jakarta Timur, (MALL.) DKI Jakarta GraPARI CEMPAKA MAS Mall ITC Cempaka Mas Lt. LG Unit 220B, Jl. Letjen , Sumur Batu, Kemayoran, (MALL.) Jakarta Pusat GraPARI CENGKARENG Ruko Mutiara Palem Blok A 2 No.11 Cengkareng GraPARI CENTRAL PARK Mall Central Park Lt. 3 Lot 116-118, Jl. Letjen S. Parman, Jakarta Barat, Jakarta 11480 (MALL.) GraPARI CIJANTUNG Mall Cijantung Lantai 1 No.1-4, Cijantung, Jakarta Timur (MALL.) GraPARI EMPORIUM PLUIT Emporium Pluit Mall, Jl. Pluit Selatan Raya Lt. 2, Jakarta Utara (MALL.) GraPARI GANDARIA CITY Gandaria City Mall, Jl. KH.Syafii'I Hazami No.8, Jakarta Selatan (MALL.) GraPARI KEBON JERUK Jl. Kebun Jeruk No. 24 GraPARI KELAPA GADING Mall Kelapa Gading 3, Lt. 2 Jl. Boulevard Kelapa Gading blok M RT 13/ RW 18, Kelapa 3 (MALL.) Gading Timur, JKT 14240 GraPARI KOTA Jl. Casablanca Raya Kav.88, Lt. 2, Jakarta Selatan KASABLANKA (MALL.) GraPARI METRO CIPULIR Mall Metro Cipulir, Lantai LG Blok A no. 1 Jl. Ciledug Raya No. 1 Jakarta Selatan (MALL.) GraPARI PGC (MALL.) PGC Lt. 3A Jl. Mayjen Sutoyo No. 76 Cililitan Kramat Jati Jaktim GraPARI PLAZA SEMANGGI Plaza Semanggi Lt.1 Kav 046-047, Jl. Jend. Sudirman Kav.50 Semanggi Jakarta Selatan (MALL.) 12930 GraPARI PONDOK BAMBU Jl. Pahlawan Revolusi no.41 Pondok Bambu Jaktim GraPARI ROXY MAS Komp. Ruko ITC Roxy Mas Blok D1 No.1-7,Jl. KH. Hasyim Ashari, Jakarta Pusat GraPARI SAWAH BESAR Jl. No. 3 & 3A, Sawah Besar,Jakarta Barat GraPARI TELKOM GROUP Jl. Jendral Gatot Subroto Kav. 52 Jakarta Selatan 12710 THE TELKOM HUB GraPARI WISMA ALIA Gedung Wisma Alia, Jl. M. Ridwan Rais 10-18, Jakarta Pusat

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ANNUAL REPORT 2019 REGION NAME ADDRESS GraPARI PONDOK INDAH Street Gallery Lantai 2 No.205, 3, Jalan Metro Pondok Indah Blok IIIB, (MALL.) Kebayoran Lama, Jakarta Selatan 12310 PLASA TELKOM YOS Jl.Yos Sudarsono Kav. 23 - 24 SUDARSO

EASTERN GraPARI BEKASI CYBER Gedung Bekasi Cyber Park, Jl KH Noer Ali No. 177, Bekasi Selatan 17144 JABODETABEK PARK (MALL.) GraPARI BEKASI TIMUR Ruko Bekasi Town Square Blok I-2 Jl. Chairil Anwar, Bekasi Timur 17113 GraPARI BOGOR Jl. Raya Pajajaran No. 37 Bogor 16143 GraPARI CIBINONG Komplek.Ruko Permata Cibinong No.3A JL.Mayor Oking No.60 Cibinong - Bogor GraPARI CIBUBUR (MALL.) Jl. Raya Alternatif Cibubur - Cileungsi Km 4 Cibubur Jawa Barat GraPARI CICURUG Ruko Cicurug City Jl. Siliwangi No.48 Blok B15 Cicurug Sukabumi 43359 GraPARI CIKAMPEK Jl. Ir. Haji Juanda No.123, Sarimulya, Kotabaru, Kabupaten Karawang, Jawa Barat 41374 GraPARI CINERE (MALL.) Mall Cinere Lt.2 No.9 Cinere, Jaksel GraPARI DRAMAGA Jl.Raya Leuwiliang Rt.02/Rw.05 Desa Cihideung Ilir,Kecamatan Ciampea,Kabupaten Bogor (sebelah DR.Chicken Cibanteng) GraPARI ITC DEPOK Mall ITC Depok Jl. Margonda Raya Depok 16423 Lantai dasar Blok A No 5Jl. Margonda (MALL.) Raya No 56 Lt G Blok 5A ( letak persisnya di sebelah kanan Lobi Utama ITC Depok) GraPARI JAMPANG KULON Jl. Raya cinageun No.89 Kp. cinageun Rt 01 Rw 01 Desa. Ciparay Kec. Jampangkulon Kab. Sukabumi (samping mexico fashion store) GraPARI KARAWANG Mall Techno Mart Blok A53 & A51, Jl. Arteri Galuh Mas, Puseur Jaya - Teluk Jambe Timur, (MALL.) Kabupaten Karawang - Jawa Barat GraPARI MARGO CITY Jl. Margonda Raya No.358 Lantai 1 Blok L 131 Kota Depok Jawa Barat 16423 (MALL.) GraPARI PELABUHAN RATU GraPARI Plasa Telkom Jl. Siliwangi No. 11 Palabuhan Ratu Kode Pos : 43364 GraPARI PURWAKARTA Jl terusan Ibrahim Singadilaga, Ruko Pembaharuan No 12, Kec. Nagrikaler, Kab Purwakarta (41115) GraPARI SUKABUMI Jl. RE Martadinata No. 71 Cikole Sukabumi GraPARI CIKARANG Komplek Ruko 21, Jalan Raya Cibarusah No.21H Kel Sukaresmi, Kec Cikarang Selatan, Kab Bekasi (17530)

west java GraPARI BANJAR Jl. Let.Jend Suwarto No. 03 Rt 01 Rw 01 Kel Hegarsari Kec.Pataruman Kota Banjar 46311 GraPARI BANTARKALONG Jl. Raya sindangreret Kp. Sindangreret, RT/RW 001/001 Kecamatan Karangnunggal Kab Tasikmalaya 46186 GraPARI BEC (MALL.) Bandung Electronic Centre LG. Utama, Jl. Purnawarman No.13-15Bandung GraPARI BTC (MALL.) BTC MALL Jl. Dr. Djundjunan 143-149, Lantai GF Blok A1 No 2-3

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PT Telekomunikasi Selular REGION NAME ADDRESS GraPARI CIANJUR Jl.Abdullah Bin Nuh No.64 - 66 Cianjur GraPARI CIMAHI Plaza Sangkuriang Jl Sangkuriang No 19-23, Cimahi GraPARI CIREBON SUPER Mall Cirebon Superblok (CSB) Lt.2 Jl. Dokter Cipto Mangunkusumo No.26 Cirebon, Jawa BLOK (MALL.) Barat GraPARI DAGO Jl. Ir. H. Juanda no. 252 Bandung GraPARI FESTIVAL Festival Citylink lt. 1 unit 51 Jl. Peta No. 241 Bandung 40232 CITYLINK (MALL.) GraPARI GARUT Jl. Pramuka Ruko IBC D-19 Depan Ramayana Kel. Pakuwon Kec. Garut kota Kab. Garut GraPARI INDRAMAYU Jalan D.I Panjaitan Rt/Rw 03/03 no.54 - Indramayu 45212 GraPARI JATIBARANG JL. Mayor Dasuki No. 58/82 Jatibarang Kab.Indramayu 45273 GraPARI KABUPATEN Jl. Merdeka Utara No.192 Ciledug Tengah Kab.Cirebon 45188 CIREBON GraPARI KOTA CIREBON Jl. Tuparev No. 57 Cirebon GraPARI KUNINGAN Jl. Siliwangi No. 196 Cigembang purwawinangun Kuningan 45512 GraPARI LEMBANG JL. Raya Lembang No. 241 Lembang GraPARI MAJALAYA Ruko Permata Majalaya Blok B No.2 Jl.Tengah 3 Majalaya 60882 GraPARI MAJALENGKA Jl. KH. Abdul Halim No 158, Majalengka 45418 GraPARI MIKO (MALL.) MIKO MALL Jl. KOPO No. 599 Lt. 1 BLOK B1 20-30 Kel. Cirangrang Kec. Babakan Ciparay Bandung 40255 GraPARI PADALARANG Jalan Rancabali No. 78a Padalarang Bandung Barat 40553 GraPARI PANGANDARAN Jl Merdeka KM 0,5 rt/rw 03/03 pananjung. Kec. Pangandaran-Ciamis 46395 GraPARI PEMANUKAN Jl. Ion Martasasmita No. 12F, Pamanukan-Subang 41254 GraPARI RANCAEKEK Jl. Raya Rancaekek No. 151 Sumedang GraPARI SINGAPARNA Jl. Raya Timur No. 212 Singaparna Kab. Tasikmalaya GraPARI SOREANG Jalan Al-Fathu Ruko Bale Sakanca Blok A.03 Desa Pamekaran Kec Soreang 40912 Kab Bandung GraPARI SUBANG Jl.Kapt.Hanafiah ruko c-8 kel.karanganyar kec Subang kab.subang 41211 GraPARI SUMBER Jl P.Cakrabuana - Kemantren Ruko Grand Duta 14A Sumber 45611 - Cirebon GraPARI SUMEDANG Jl. Mayor Abdurrahman no 154 Komplek Pujasera Sawopolo Sumedang GraPARI SUNDA Jl. Sunda No.16, Bandung 40112 GraPARI TASIKMALAYA Jl. Panglayungan II No. 3 - 5 Cipedes, Tasikmalaya GraPARI TELKOM GROUP Jl. Lembong no 11 Bandung LEMBONG GraPARI TRANS STUDIO Trans Studio Mall Lantai 3 Jalan Gatot Subroto No.289 Cibangkong, Bandung, Jawa Barat (MALL.) 40273 GraPARI CIAMIS Jl. KH. No. 13B Ciamis GraPARI MTC Jl. Soekarno-Hatta no 590, Ruko MTC D-18 bandung 40286

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ANNUAL REPORT 2019 REGION NAME ADDRESS GraPARI BANJARNEGARA Ruko Atrium Blok B-5, JL HOS Cokroaminoto Banjarnegara No.39 53412 Jawa Tengah GraPARI BANYUMANIK Jl. Jati Raya Blok C-17 Banyumanik , Kabupaten Semarang, Jawa Tengah GraPARI BATANG Jl. Raya Limpung (Jl. Jend Sudirman) Ruko no 6 Limpung (selatan SD N 1 Limpung), Batang GraPARI BOYOLALI Jl. Pandanaran No. 23, Boyolali. GraPARI CEPU Jl. Ronggolawe No. 67 Cepu-Blora GraPARI CILACAP Jl. S. Parman No 30 Cilacap GraPARI CILACAP KROYA Plaza Telkom Jl A Yani no 70 Kroya Cilacap 53282 GraPARI FL. UG, No. 62, Jl. Simpang Lima No 1, Semarang CIPUTRA SEMARANG (MALL.) GraPARI DEMAK Ruko C Jl Sultan Fatah Demak GraPARI GEDONG KUNING Jl. Gedong Kuning No. 94B, Rejowinangun,Kota Gede,Yogyakarta-55171. GraPARI HARTONO SOLO : Hartono Mall GF-C09 Jl Ir Soekarno Madegondo Solo Baru Sukoharjo (MALL.) GraPARI HARTONO Hartono Mall Lt. 1/B-11, Jl. Raya Ring Road Utara, Kel. Condong Catur, Kec. Depok, Kab. YOGYAKARTA (MALL.) Sleman, DIY - 55283. GraPARI JEPARA Jl. Pemuda No. 64 Jepara, Jawa Tengah GraPARI JOGJA CITY Jogja City Mall Lt.1,?�Jl Magelang Km.6 No.18 Sinduadi, Sleman, DIY (MALL.) GraPARI KARANGANYAR Jl. Lawu barat, pandes papahan. Karanganyar GraPARI KEBUMEN Jl. H.M Sarbini No.15A Kebumen 54311 GraPARI KENDAL Jl. Soekarno Hatta No.70 B Weleri - Kendal 51355 GraPARI KLATEN Jl. Veteran No. 22 Klaten GraPARI KUDUS Jl. Jenderal Sudirman No.69, Kudus GraPARI KULONPROGO Jl. Sutidjab 74, Kel. Wonosari Lor, Kec. Wates, Kulon Progo. GraPARI MAGELANG Jl. Jend. Sudirman No 375 Magelang GraPARI PATI Jl. Pemuda No 252 Pati, Jawa Tengah GraPARI PEKALONGAN Jl. Merdeka No.3 D Pekalongan GraPARI PEMALANG Jl. Jend. Sudirman, Ruko Swalayan Pemalang Permai Blok F, Pemalang GraPARI PURBALINGGA Jl. MT Haryono No. 18 Purbalingga Jawa Tengah GraPARI PURWODADI Ruko Grand City No2B,Jl. R. Suprapto No 60,Purwodadi GraPARI PURWOKERTO Komp Ruko Permata Hijau, Jl DR Angka, Purwokerto GraPARI PURWOREJO Jl. KHA Dahlan No. 141 GraPARI REMBANG Jl. Diponegoro No.28 Rembang GraPARI SALATIGA Jl.Diponegoro, Ruko Wijaya Square Blok A No 5 , Salatiga GraPARI SEMARANG Jl. Pahlawan No 10, Semarang PAHLAWAN GraPARI SOLO Jl. Slamet Riyadi No 310, Solo GraPARI SRAGEN Jl. Raya Sukowati No.28E (Ruko depan samsat sragen) , Sragen, Jawa Tengah

162

PT Telekomunikasi Selular REGION NAME ADDRESS GraPARI TEGAL Jl. Gajah Mada No 77, Tegal GraPARI TEMANGGUNG Jl. Jend. Sudirman No. 95, Ruko 1,Jampiroso, Temanggung. GraPARI UNGARAN Jl. Diponegoro No 158 Ungaran GraPARI WONOGIRI JL Pemuda II No.1 Wonogiri (efektif 1 November 2015) GraPARI WONOSARI Jl KH No 6 Kepek Wonosari GraPARI WONOSOBO Jl. RSU Setjonegoro No. 10 B, Wonosobo GraPARI YOGYAKARTA Jl. Jend Sudirman No 60, Yogyakarta LOOP STATION Jl Trikora No.2 Yogyakarta 55122 YOGYAKARTA

EAST JAVA GraPARI ATOM (MALL.) JL. Bunguran45 Lt 1 Blok A-85 Surabaya GraPARI BANGKALAN Jl. Trunojoyo 39C, Bangkalan GraPARI BANYUWANGI Jl. DR. Sutomo No.63 Banyuwangi GraPARI BLITAR Ruko Melati 1E. Jln. Melati No. 1 Blitar GraPARI BOJONEGORO Jl. Dr Wahidin No. 9B Bojonegoro GraPARI BONDOWOSO Jl. Diponegoro No 24B Bondowoso GraPARI BUKIT DARMO Jl. Bukit Darmo Boulevard No 6 C-D, Surabaya GraPARI CARUBAN Jl. Panglima Sudirman No.16 Caruban, Madiun 63153 GraPARI CIPUTRA WORLD LG -55 Jl. Mayjend Sungkono 89 Surabaya (MALL.) GraPARI CYBER (MALL.) JL. Raya Langsep no. 2 Malang GraPARI GALAXY Jalan Dharmahusada Indah Timur No.35 - 37 1 lt.2 unit 228 Surabaya SURABAYA (MALL.) GraPARI GENTENG Jl. Hassanuddin No.11, Genteng Wetan Banyuwangi GraPARI GRESIK Jl. Usman Sadar No 81, Gresik GraPARI JEMBER Jl Kartini No 4-6 Jember GraPARI JOMBANG Jl. KH Wachid Hasyim No. 136E Jombang GraPARI KEDIRI PT. Telkom Kediri , Jl. Hayam Wuruk 45-47 Kediri GraPARI KEPANJEN Jl. Panji 154 Kepanjen 65163 GraPARI LAMONGAN Jalan Veteran No. 12 (depan SMAN 2 Lamongan) GraPARI LAWANG Jl. Raya Cipto 57 Bedali Lawang Malang GraPARI LUMAJANG Jl. Raya PB Sudirman 73 Lumajang Jawa Timur GraPARI MADIUN Gedung Telkom , Jl. Pahlawan No 59, Madiun GraPARI MAGETAN Jl. Monginsidi No. 30 Magetan GraPARI MALANG Jl. S.Parman No 47 Malang GraPARI MOJOKERTO Jl. Gajah Mada 98A Mojokerto GraPARI MUNCAR Jl. Brawijaya no. 27 Muncar Banyuwangi GraPARI NGANJUK Ruko Mustika Square, Jl. Merdeka block 2A Nganjuk

163

ANNUAL REPORT 2019 REGION NAME ADDRESS GraPARI NGAWI Jl. A Yani No 97, Ngawi GraPARI PACITAN Jl. P. Sudirman 180 Pacitan 63511 GraPARI PAMEKASAN Gedung Telkom, Jl. Trunojoyo No. 67 Pamekasan GraPARI PANDAAN Plaza Telkom Jl A. Yani No. 56A Kasri - Pandaan GraPARI PARE Jl. A. Yani no 6 Pare Kediri GraPARI PASURUAN Jl. Panglima Sudirman No. 122, Pasuruan GraPARI PERAK Jl. Perak Timur 40 B Surabaya GraPARI PONDOK JATI Jl. Raya Pondok Jati Blok BE no. 12A Sidoarjo GraPARI PROBOLINGGO Jl. Suroyo No 16, Probolinggo GraPARI RUNGKUT Ruko MERR Square City 2B Pandugo GraPARI SAMPANG Jl. J.A. Suprapto No. 50, Sampang GraPARI SIDOARJO Komp. Jenggolo Plaza Blok B-1, Jl. Kh. Mukmin A-11 Sda GraPARI SITUBONDO Jl. Kenanga no 94 Situbondo GraPARI SUMENEP Jl. KH Wachid Hasyim No. C-2 Sumenep 69417 GraPARI SURABAYA Jl. Pemuda No. 181, Surabaya PEMUDA GraPARI TAMAN Jl. Raya Taman no. 218 E Sidoarjo GraPARI TELKOM GROUP Jl. Raya Dinoyo No.48, Keputran, Tegalsari, Kota SBY, Jawa Timur 60265 DINOYO GraPARI TRENGGALEK Jl. Hatta Ruko Hayam Wuruk, Trenggalek GraPARI TTC HR Jl. HR Muhammad No 46, Surabaya MUHAMMAD GraPARI TUBAN Jl. Brawijaya No. 26 Tuban GraPARI TULUNGAGUNG JL. Panglima Sudirman 45 Ruko Kanjengan Tulungagung GraPARI WTC SURABAYA Gedung WTC lt.1 No. 164 - 171 . Jl. Pemuda 27-31. Surabaya (MALL.) GraPARI PLAZA MARINA Mall Plaza Marina Lt.1 Block B12-B21, Jl Raya Margorejo Indah 97-99 Surabaya SURABAYA (MALL.) GraPARI PONOROGO Jl. Diponegoro No 42 Ponorogo LOOP STATION SURABAYA Jl. Raya Darmo No. 110 Surabaya Dinoyo Jl. Raya Dinoyo No.48, Keputran, Tegalsari, Jawa Timur 60265

BALI NUSA GraPARI ATAMBUA Jl. No. 5, Kelurahan Beirafu, Kec. Atambua Barat, Kabupaten Belu 85711 TENGGARA GraPARI BIMA Jl.Soekarno Hatta kelurahan Pane (depan Gedung Koni lapangan manggemaci) Kota Bima GraPARI DENPASAR JL. Teuku Umar No 6, Denpasar GraPARI GATSU Jl. Gatot Subroto Timur no 36 C, Denpasar 80237 GraPARI GUNUNG AGUNG Jl. Gunung Agung 125B, Denpasar (80118) GraPARI KARANGASEM Jl . Jendral Sudirman No.98 C Amlapura, karangasem, 80813 GraPARI KEFAMENANU Jl. Basuki Rahmat Kel. Benpasi, Kec. Kota Kefamenanu GraPARI KUPANG Jl. WJ. Lalamentik No 88, Oebufu, Kupang

164

PT Telekomunikasi Selular REGION NAME ADDRESS GraPARI KUTA (MALL.) Jl. By Pass , Simpang Dewa Ruci Kuta – Bali (Simpang Siur), Bali GraPARI LOMBOK Jalan Sriwijaya No. 333, Mataram, NTB EPICENTRUM (MALL.) GraPARI LOMBOK UTARA Jl. Raya Tanjung komplek Pertokoan (Depan Lap Umum Super Semar) Tanjung-Lombok Utara, 83352 GraPARI MALUK Jl. Raya Maluk no. 141 Maluk-Sumbawa Barat 84357 NEWMONT GraPARI MATARAM Jl.Pejanggik No 47F, Mataram, Lombok GraPARI MAUMERE Jl Ahmad Yani Kelurahan Nangameting Kecamatan Alok Timur Kabupaten Sikka 86111 GraPARI MITRA CELLULAR Jl. Jenderal Sudirman, No.60, Kuanino, Kec. Kota Raja, Kota Kupang, Nusa Tenggara WORLD (MALL.) Timur. Kode Pos 85119 GraPARI NEGARA Jl. Ngurah Rai 86-Negara 82217 GraPARI NUSA DUA Jl. Bypass Ngurah Rai No. 122, Mumbul, Nusa Dua 80363 GraPARI RENON Jl. Raya Puputan Renon No. 33, Renon, Denpasar GraPARI RUTENG Jl. Kartini No. 2, Desa Lawir, Kec. Langke Rembong, Kab. Manggarai 86516 GraPARI SELONG Jl. Pejanggik No.53 Pancor (Komplek Pertokoan Yanmar baru) Kelurahan Majidi, Kecamatan Selong, Lombok Timur 83611 GraPARI SINGARAJA Jl. A. Yani No. 72 Singaraja 81116 GraPARI SOE Ruko Baru Soe JL.Hayam Wuruk No.16A Kelurahan Taubneno, Kota Soe Kabupaten TTS- NTT 85511 GraPARI SUMBAWA BESAR Jl. Mangga No.09 Kel.Umasima Sumbawa Besar, NTB GraPARI TABANAN Jl. Ir. Soekarno No. 99D (Bypass Kediri), Kec. Kediri, Tabanan 52151 GraPARI TALIWANG Jl. Jendral Sudirman No 30 Taliwang, Sumbawa Barat 84355 GraPARI WAINGAPU Kompleks Pertokoan Permata Sari Jl. Ahmad Yani No.4, Blok A2, Mentawai, Waingapu 87111 GraPARI GIANYAR Jl. By Pass Darmagiri Desa Buruan Kecamatan Blahbatuh Kabupaten Gianyar (Dewatacom)

KALIMANTAN GraPARI AMUNTAI Jl.A.Yani Km 01 Amuntai Kota Depan Taman Putri Junjung Buih Kec. Amuntai Tengah Kel. Antasari ,Amuntai 71414 GraPARI Jl A Yani km 35.5 Kel Mentaos Banjarbaru Utara 70711 Kec. Banjarbaru Utara Kel. Mentaos ,Banjarbaru 70711 GraPARI BANJARMASIN Jl. Ahmad Yani Km 5,7 Banjarmasin GraPARI BARABAI Jl. Ir. P. H.M.Noor No.57 Depan Gedung Murakata Barabai Hulu Sungai Tengah Kec. Barabai Kel. Barabai Kota ,Barabai 71311 GraPARI BATULICIN Jl Raya Batulicin Rt04 Batulicin Tanah Bumbu Kec. Batulicin Kel. Simpang Empay ,Batulicin 70121 GraPARI BONTANG Jl. Brigjend Katamso No.10 Bontang Plaza, Bontang GraPARI BUNTOK Jl. Pangluma Batur No. 25 Kec. Dusun Selatan Kel. Hilir Sper ,Buntok 73711

165

ANNUAL REPORT 2019 REGION NAME ADDRESS GraPARI HANDIL Jl. M. Hatta Handil 3 Kec. Muara Jawa Kel. Muara Jawa Ulu ,Kutai Kartanegara 75261 GraPARI HR ARAHMAN Jl H Rais Arahman No 168 (sebelah bank syariah mandiri) sungai jawi Kec. pontianak kota PONTIANAK Kel. sungai jawi ,pontianak 78118 GraPARI KANDANGAN Jl. Panglima batur simp.4 bri no 36 Kec. kandangan Kel. kandangan kota ,kandangan 71211 GraPARI KASONGAN jl. Km.01 kasongan sampit (sebelah kantor Adira Finance) Kec. Katingan Hilir Kel. Kasongan Lama ,Kasongan 74313 GraPARI KETAPANG Jl. Sisingamangaraja no.22 Kec. delta pawan Kel. sampit ,ketapang 78851 GraPARI KOTA BANGUN Jl.Sri Bangun Rt.19 No.31 depan gedung serbaguna Kec. Kota bangun Kel. Kota Bangun Ulu ,Kutai Kartanegara 75561 GraPARI KOTABARU Jl. Veteran No. 01 (Seberang Hotel Kartika) Kec. Pulau Laut Utara Kel. Dirgahayu ,Kotabaru 72116 GraPARI KUALA KAPUAS Jl. Tambun Bungai No. 94 RT.07 Kec. Selat Kel. Selat Dalam ,Kuala Kapuas 73516 GraPARI LOAJANAN Jl. Cipto Mangunkusumo Rt.12 No:09 Kec. Loajanan Kel. Harapan Baru ,Samarinda Seberang 75131 GraPARI MALINAU Jl Raja Pandita Rt 10 Tanjung Belimbing Kec. Malinau Kota Kel. Malinau Hulu ,Malinau 77554 GraPARI MELAK Jl KH Dewantara No. 55Ab RT 26 Kec. Kel. , GraPARI MT HARYONO Jl..soekarno hatta km.5 kel.grha Kec. balikpapapn utara Kel. graha ,balikpapan 76136 BALIKPAPAN GraPARI NGABANG Jl. Pemuda Dusun Tungkul No. 08 Ngabang ( Sebelah toko roti kaisar ) Kec. Ngabang Kel. Hilir Kantor ,Landak 79357 GraPARI NUNUKAN Jl. Tien Soeharto Rt.14 No.13 Kec. Nunukan Kel. Kel. Nunukan Timur ,Nunukan 77482 GraPARI PALANGKARAYA Jl. Ahmad Yani No. 45 Pahandut, Palangkaraya GraPARI PANGKALAN BUN Jl. Iskandar No.99b Kec. Arut Selatan Kel. Madurejo ,Pangkalan Bun 74112 GraPARI PELAIHARI Komp. Safira Land No. B2 Jl. Mangga Besar, Sarang Halang Kec. Pelaihari Kel. Sarang Halang ,Pelaihari 70813 GraPARI PENAJAM Jl. Propinsi km.18 ruko pasar petung Kec. penajam Kel. petung ,balikpapan 76143 GraPARI PONTIANAK Jl. Gusti Sulung Lelanang No.5A, Pontianak GraPARI PULAU IRIAN Jl. Pulau Irian no. 67 samping Mall SCP Samarinda Kec. Samarinda Ilir Kel. Pelabuhan SAMARINDA ,Samarinda 75111 GraPARI PUTUSIBAU Jl Komyos Sudarso No 28 - Putussibau Kec. putussibau selatan Kel. putussibau kota ,putussibau 78711 GraPARI RANTAU Jl. Brigjend H. Kec. Tapin Utara Kel. Rantau Kiwa ,Rantau 71111 GraPARI S.PARMAN Jl. Brigjend H. Hasan Basry rt.42 no. 3 ruko Kec. banjarmasin utara Kel. sei miai BANJARMASIN ,banjarmasin 70123 GraPARI SAMARINDA Mall Lembuswana Blok AC 16-18 Jl. S Parman Samarinda Utara GraPARI SAMBAS Jl.Terigas ds.saing rambi no 89.b rt rw 14/03 Kec. Sambas Kel. Sunsung ,Sambas 79400 GraPARI SAMPIT Jl. Cilik Riwut KM 1.5 RT 15 Sampit - Kalimantan Tengah

166

PT Telekomunikasi Selular REGION NAME ADDRESS GraPARI SANGATTA Jl. Apt.Pranoto No 98D Kec. Sangatta Kel. Sangatta Utara ,Sangatta 75611 GraPARI SANGGAU Jl. A. Yani No. 25 Kec. Kapuas Kel. Ilir kota ,Sanggau 78516 GraPARI SEI DANAU Jln.provinsi km.167 makmur mulia satui tanah bumbu kalsel Kec. satui Kel. sungai danau ,tanah bumbu 72275 GraPARI SINGKAWANG Jl. Swadaya No.02 Kec. Singkawang Barat Kel. Pasiran ,Singkawang 79123 GraPARI SINTANG Jl.MT Haryono KM 03 Kec. Sintang Kel. Rawa Mambok ,Sintang 78614 GraPARI SUDIRMAN Jl. Jenderal Sudirman No. 1 Damai, Balikpapan BALIKPAPAN GraPARI TANAH GROGOT Jl. Noto Sunardi No.17 (Samping Mesjid Bina ) Kec. Tanah Grogot Kel. Tanah Grogot ,Balikpapan 76211 GraPARI TANJUNG Jl. Ir. PHM. Noor RT. 08 kel. Mabuun kec. Murung pudakkab. Tabalong Kec. murung pudak Kel. mabuun ,tabalong GraPARI TANJUNG REDEP Jl. Niaga 1 RT 1 No. 19 Tj. Redep - Berau 77311 GraPARI TANJUNG SELOR Jl. Sengkawit, No. 104B, Rt. 056 Kec. Tanjung Selor Kel. Tanjung Selor Hilir ,Bulungan 77212 GraPARI TARAKAN Jl. Mulawarman No. 12, Tarakan GraPARI TENGGARONG Jl.Patin No.09 RT.28 Kec. Tenggarong Kel. Timbau ,Kutai Kartanegara 75511

SULAWESI GraPARI AMURANG JL. Kantor Pos Lk 2 Kec. Amurang Kel. Uwuran 1 ,Manado 95111 GraPARI BAU BAU Jl. Betoambari no. 55 Kec. Murhum Kel. Tanganapada ,Baubau 93725 GraPARI BITUNG Jl. Wolter Monginsidi KM 4, Paceda Madidir Kec. Madidir Kel. Madidir Unet ,Bitung 95372 GraPARI BONE JL. Ahmad Yani (Depan Alfamart) Kec. Tanete Riattang Barat Kel. Jeppe’e ,Watampone 92732 GraPARI BULUKUMBA Jl.Kusuma Bangsa (Depan KFC Bulukumba) Kec. CAILE Kel. UJUNG BULU ,BULUKUMBA GraPARI DAYA MAKASSAR Jl. Perintis Kemerdekaan KM15 Blok A28 ruko kima square daya Kec. Biringkanaya Kel. Daya ,Makassar 90241 GraPARI GORONTALO Jl. Jaksa Agung Suprapto No. 22, Limba U dua, kota selatan, Gorontalo GraPARI GOWA jl sultan hasanuddin no 146b kab Gowa Kec. Somba opu Kel. Pandangpandang ,Gowa 92111 GraPARI KENDARI Jl. A Yani No.8 Kendari GraPARI KOLAKA JL. Pramuka , Samping Bank BAHTERAMAS Kec. KOLAKA Kel. LAMOKATO ,KOLAKA 93516 GraPARI KOTAMOBAGU Jl. Adampe Dolot No. 19 Kec. Kotamobagu barat Kel. mogolaing ,kotamobagu 95711 GraPARI LUWUK Jl.Urip sumoharjo Kec. luwuk Kel. karaton ,luwuk 94711 GraPARI MAKASSAR Jl. AP. Pettarani No.2 Makassar GraPARI MAKASSAR TRADE jl. Ahmad Yani No 49 MTC Lt3. Blok P6 - P9 Kec. Wajo Kel. Patunuang ,Makassar 90171 CENTER (MALL.) GraPARI MAMUJU Jl. KS. Tubun ( Samping Kiri Indomaret) Kec. Mamuju Kel. Rimuku ,Mamuju 91511 GraPARI MANADO Jl. Pemuda No.2 Sario Manado GraPARI MANADO TOWN Jl. Piere Tendean Boulevard Lt. Ground Floor (GF), Manado SQUARE (MALL.) GraPARI MAROS Jl.jend. sudiirman no 133 butta toa maros Kec. Turikale Kel. Pettuadae ,Maros 90516

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ANNUAL REPORT 2019 REGION NAME ADDRESS GraPARI MATOANGIN Jl. Perintis Kemerdekaan KM.8 No.57A Kec. Tamalanrea Kel. Tamalanrea Jaya ,Makassar SQUARE 90245 GraPARI OSMAN DJAFAR Jl. Usman Djafar No. 9 Kec. Ujung Pandang Kel. Baru ,Makassar 90111 MAKASSAR GraPARI PALOPO Jl. Andi Djemmma Ruko No. 4-5 Kota Palopo Kec. Wara Kel. Tompotika ,Palopo 91921 GraPARI PALU Jl. Towua No. 43 Palu Selatan, Palu Sulawesi Tengah GraPARI PANAKUKKANG Jl.Adhyaksa Baru No.1 Panakkukang Square Lt.2 Kec. Panakkukang Kel. Pampang (MALL.) ,Makassar 90231 GraPARI PARE-PARE Jl. BAU MASSEPE no. 108 kel. Cappa Galung kec. Bacukiki Barat kota Parepare GraPARI PARIGI Jl. Trans Sulawesi Kel. Masigi Kec. Parigi Kel. Masigi ,Parigi 94471 GraPARI POLMAN Jl. H Andi Depu No. 186 Pekkabata Kec. Polewali Kel. Pekkabata ,Polman 91311 GraPARI POSO Jl. P Irian Jaya No. 8 Kelurahan Kayamanya sentral Kec. Poso Kota Kel. Kayamanya Sentral ,Poso 94617 GraPARI RAHA Jl. S. Sukowati No. 36 Kec. Katobu Kel. Raha II ,Raha 96311 GraPARI SELAYAR Jl.Kenari ( samping hotel selayar beach )kab.kepulauan selayar Kec. benteng Kel. benteng ,benteng selayar 92812 GraPARI SENGKANG Jl. Jawa no 2 (depan apotik mawar ) Kec. tempe Kel. lapongkoda ,sengkang 90911 GraPARI SINJAI Jl.Persatuan Raya no.13 depan kantor BNI Kec. Sinjai Utara Kel. Balangnipa ,Sinjai 92612 GraPARI SOROAKO Jl.Gamalama No.01 Soroako Kec. Nuha Kel. Magani ,Soroako 92984 GraPARI TERNATE Jl. Kapitan No. 124 Kec. Ternate Tengah Kel. Kalumpang ,Ternate 97722 GraPARI TOBELO Jl. Bhayangkara RT003/RW005 Desa Gamsungi Kec Tobelo Kec. Tobelo Kel. Gamsungi, Tobelo 97762 GraPARI TOLI TOLI Jl. Usman Binol No. 24 Kec. Baru Kel. Baolan ,Tolitoli 94514 GraPARI TOMOHON Jl. Raya Tomohon, Kel. Kakaskasen, Lk. VI Kec. Kec. Tomohon Utara Kel. Kakaskasen, Tomohon 95417 GraPARI TORAJA Jl. Pongtiku lemb. Rinding Batu Kec. Kesu (Samping Bank Pundi) Toraja Utara 91831 GraPARI MARISA Jl. Trans Sulawesi No. 133 Kec. Duhiadaa Kel. Buntulia Selatan ,Marisa 96266 GraPARI PANGKEP Jl. Kemakmuran no 05 & 06 Ruko Abadi Pangkep Kec. pangkajene Kel. Mappasaile, Pangkep 90611 GraPARI PINRANG Jl.Jendral Sudirman Kec. maccorawalie Kel. bentenge ,Pinrang 91212

MALUKU PAPUA GraPARI ABEPURA Jl.Raya Abepura (Plasa Telkom Abepura) Kec. Abepura Kel. Awiyo ,Jayapura 99225 GraPARI AMBON Jl. J.B Sitanala No 9 A, Talake, Ambon GraPARI BIAK Jl. Jend. Sudirman Ruko Pemda No.04 Kec. Biak Kota Kel. Fandoi ,Biak 98112 GraPARI FAK FAK Jln. DRS. Selasa Namudat No.8/9 Kec. Fakfak Kel. Fakfak Selatan ,Fakfak 98611 GraPARI JAYAPURA Mall Jayapura Ground Floor Blok A 12-13, Jl. Samratulangi, Bayangkara, Jayapura Utara. Kota Jayapura, Papua 99112 GraPARI MANOKWARI Jl. Merdeka No. 66, Manokwari GraPARI MASOHI Jl Imam Bonjol, Belakang Bank BtPN Lama Kec. Kota Masohi Kel. Namaelo ,Masohi 97511 GraPARI MERAUKE Jl. Raya Mandala No 168 Kec. Merauke Kel. Merauke ,Merauke 99616 GraPARI NABIRE Jl.Pepera,Samping Plasa Telkom Kec. Nabire Kel. Karang Mulia ,Nabire 98815

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PT Telekomunikasi Selular REGION NAME ADDRESS GraPARI RIDGE CAMP Superblock Plaza agawa Ogom Ridgecamp Mp 72 Kec. Tembagapura Kel. Ridgecamp, Timika 99971 GraPARI SAUMLAKI TAP Saumlaki - Jln. Mathilda Batlayeri No. 8 (eks Toko Pindah) samping SMK Negeri 2 dan Mutiara Meubel Kec. Tanimbar Selatan Kel. Saumlaki ,Saumlaki 97464 GraPARI SENTANI Jl. Sentani Hawai kantor GraPARI Telkomsel Sentani Kec. Sentani Kel. Sentani Kota ,Sentani 99352 GraPARI TELKOM GROUP Jl. Ahmad Yani No. 16 Sorong Manoi, Papua Barat 98412 SORONG GraPARI TEMBAGAPURA Mile 68, Tembagapura Grapari Kec. Tembagapura Kel. Tembagapura ,Tembagapura 99967 GraPARI TIMIKA Jl. Hasanuddin, Timika, Mimika Baru, Nawaripi, Mimika Baru, Kabupaten Mimika, Papua 99910 GraPARI TUAL Jln. Dr. Laimena ( Samping Kantor Pegadaian Kota Tual) Kec. Pulau Dullah Selatan Kel. Ketsoblak ,Tual 97612 GraPARI WAMENA Jl. Thamrin Kec. Wamena kota Kel. wanena ,jayawijaya 99511

REGION NAME ADDRESS INTERNATIONAL GraPARI HONGKONG 11 Keswick Street Causeway Bay (Depan KJRI Hong Kong) GraPARI MADINAH I Al Namlah Center ( Hotel Salihiyah) Pintu 26 Masjid Nabawi GraPARI MADINAH II Hotel Millenium Taibah Lantai Shopping Center Pintu 6 & Pintu 7 Masjid Nabawi GraPARI MAKKAH Zam-zam tower, lantai P3 (Foodcourt area) GraPARI TAIWAN Ruko No. 1A, Lantai B1, Taipei City Mall (Mall Bawah Tanah TMS pintu Y27, Beimen MRT Ext 3)

AREA GraPARI Type Number of GraPARI Outlet 1 GRA Mitra 85 2 GRA Mitra 70 3 GRA Mitra 92 4 GRA Mitra 83

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ANNUAL REPORT 2019 Telkomsel’s shareholders are PT Telekomunikasi Indonesia Tbk (TELKOM) and Singapore Telecom Mobile Pte Ltd (Singtel Mobile). TELKOM, which owns 65% of Telkomsel’s issued share capital, is the largest full-service telecommunications operator in Indonesia. TELKOM is listed on the (IDX:TLKM) and the New York Stock Exchange (NYSE:TLK) and is majority owned by the Government of Indonesia. Singtel Mobile owns 35% of Telkomsel’s issued share capital and is a wholly-owned subsidiary of Singapore Telecommunications Limited (Singtel). Singtel is Asia’s leading communications group with a network of offices in the US, Europe, Asia-Pacific and Middle East. Singtel is listed on the Singapore Exchange (SGX:ST).

Addresses of Shareholders Company Address

PT Telekomunikasi Selular (Telkomsel) Telkom Landmark Tower, Tower 1 Jl. Jend Gatot Subroto Kav. 52, PT Telekomunikasi Indonesia Tbk Jakarta 12710, Indonesia (TELKOM) www.telkomsel.com Graha Merah Putih Jl. Japati No. 1, Bandung Jawa Barat, Indonesia - 40133 Telepon : +62-22-4521404 Faksimili : +62-22-7206757 Website : www.telkom.co.id

Singtel Mobile 31 Exeter Road - Comcentre Singapore 239732 Tel. +65-6838 3388 Fax. +65-6738 3769 www.singtel.com

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ANNUAL REPORT 2019 PT Telekomunikasi Selular (Telkomsel)

Telkom Landmark Tower, Tower 1 Jl. Jend Gatot Subroto Kav. 52, Jakarta 12710, Indonesia www.telkomsel.com

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