PT Smartfren Telecom Tbk Dan Entitas Anak/And Its Subsidiaries

PT Smartfren Telecom Tbk dan Entitas Anak/and Its Subsidiaries

Laporan Keuangan Konsolidasian/ Consolidated Financial Statements

Pada Tanggal 31 Maret 2014 (Tidak Diaudit) dan 31 Desember 2013 (Diaudit) dan Untuk Periode Triwulan yang Berakhir 31 Maret 2014 dan 2013 (Tidak Diaudit)/ As of March 31, 2014 (Unaudited) and December 31, 2013 (Audited) and For the Quarter Periods Ended March 31, 2014 and 2013 (Unaudited)

PT SMARTFREN TELECOM Tbk DAN ENTITAS ANAK/AND ITS SUBSIDIARIES DAFTAR ISI/TABLE OF CONTENTS

Halaman/ Page

Surat Pernyataan Direktur tentang Tanggung Jawab atas Laporan Keuangan Konsolidasian PT Smartfren Telecom Tbk dan Entitas Anak Pada Tanggal 31 Maret 2014 (Tidak Diaudit) dan 31 Desember 2013 (Diaudit) dan Untuk Periode Triwulan yang Berakhir pada tanggal 31 Maret 2014 dan 2013 (Tidak Diaudit)/ Directors’ Statement on the Responsibility for Consolidated Financial Statements of PT Smartfren Telecom Tbk and its Subsidiaries as of March 31, 2014 (Unaudited) and December 31, 2013 (Audited) and For the Quarter Periods Ended March 31, 2014 and 2013 (Unaudited)

LAPORAN KEUANGAN KONSOLIDASIAN – Pada Tanggal 31 Maret 2014 (Tidak Diaudit) dan 31 Desember 2013 (Diaudit) dan Untuk Periode Triwulan yang Berakhir 31 Maret 2014 dan 2013 (Tidak Diaudit)/

CONSOLIDATED FINANCIAL STATEMENTS – As of March 31, 2014 (Unaudited) and December 31, 2013 (Audited) and For the Quarter Periods Ended March 31, 2014 and 2013 (Unaudited)

Laporan Posisi Keuangan Konsolidasian/Consolidated Statements of Financial Position 1

Laporan Rugi Komprehensif Konsolidasian/Consolidated Statements of Comprehensive Loss 3

Laporan Perubahan Ekuitas Konsolidasian/ Consolidated Statements of Changes in Equity 4

Laporan Arus Kas Konsolidasian/Consolidated Statements of Cash Flows 5

Catatan atas Laporan Keuangan Konsolidasian/Notes to Consolidated Financial Statements 6

I.1

I.3

I.4

I.5

PT SMARTFREN TELECOM Tbk PT SMARTFREN TELECOM Tbk DAN ENTITAS ANAK AND ITS SUBSIDIARIES Laporan Posisi Keuangan Konsolidasian Consolidated Statements of Financial Position 31 Maret 2014 (Tidak Diaudit) dan 31 Desember 2013 (Diaudit) March 31, 2014 (Unaudited) and December 31, 2013 (Audited) (Angka-angka Disajikan dalam Rupiah, kecuali Dinyatakan Lain) (Figures are Presented in Rupiah, unless Otherwise Stated)

Catatan/ 31 Maret 2014/ 31 Desember 2013/ Notes March 31, 2014 December 31, 2013

ASET ASSETS

ASET LANCAR CURRENT ASSETS Kas dan setara kas 4,24,25,40,41 817.425.456.836 915.087.107.062 Cash and cash equivalents Piutang usaha 5,24,40,41 Trade accounts receivable Pihak berelasi 5.961.146.730 6.653.428.323 Related parties Pihak ketiga - setelah dikurangi cadangan kerugian Third parties - net of allowance for penurunan nilai masing-masing sebesar impairment loss of Rp 41,028,192,290 as of Rp 41.028.192.290 pada tanggal 31 Maret 2014 March 31, 2014 and December 31, 2013, dan 31 Desember 2013 88.144.685.029 104.534.447.241 respectively Piutang lain-lain 24,40,41 Other accounts receivable Pihak berelasi 4.926.944.404 3.694.733.256 Related parties Pihak ketiga 26.954.781.417 85.668.487.881 Third parties Persediaan - setelah dikurangi cadangan kerugian penurunan nilai persediaan masing-masing Inventories - net of allowance for decline in value sebesar Rp 2.385.304.777 pada tanggal of Rp 2,385,304,777 as of March 31, 2014 and 31 Maret 2014 dan 31 Desember 2013 6 470.909.774.303 343.822.470.348 December 31, 2013, respectively Pajak dibayar dimuka 7 314.400.055.186 233.401.074.881 Prepaid taxes Biaya dibayar dimuka 8 235.091.225.158 289.639.942.056 Prepaid expenses Aset lancar lain-lain 9 72.838.259.782 31.793.712.621 Other current assets Jumlah Aset Lancar 2.036.652.328.845 2.014.295.403.669 Total Current Assets

ASET TIDAK LANCAR NON-CURRENT ASSETS Aset pajak tangguhan - bersih 36 1.026.876.841.394 1.015.581.195.698 Deferred tax assets - net Aset tetap - setelah dikurangi Property and equipment - net of accumulated akumulasi penyusutan masing-masing sebesar depreciation of Rp 4,978,979,188,668 and Rp 4.978.979.188.668 dan Rp 4.752.957.827.236 Rp 4,752,957,827,236 as of March 31, 2014 pada tanggal 31 Maret 2014 dan 31 Desember 2013 10,21,22,30 9.162.411.878.744 9.268.792.260.898 and December 31, 2013, respectively Goodwill dan aset takberwujud lainnya - Goodwill and other intangible assets - setelah dikurangi amortisasi masing-masing net of accumulated amortization of sebesar Rp 1.222.618.797.201 dan Rp 1,222,618,797,201 and Rp 1,166,601,277,540 Rp 1.166.601.277.540 pada tanggal as of March 31, 2014 and December 31, 2013, 31 Maret 2014 dan 31 Desember 2013 11,30 1.545.999.417.963 1.555.326.418.015 respectively Uang muka jangka panjang 12,24,41 1.841.572.947.149 1.956.958.433.229 Long-term advances Biaya dibayar dimuka jangka panjang 8 21.537.580.462 21.165.944.058 Long-term prepaid expenses Aset lain-lain 13 34.029.818.730 34.373.773.990 Other assets Jumlah Aset Tidak Lancar 13.632.428.484.442 13.852.198.025.888 Total Non-current Assets

JUMLAH ASET 15.669.080.813.287 15.866.493.429.557 TOTAL ASSETS

Lihat catatan atas laporan keuangan konsolidasian yang merupakan See accompanying notes to consolidated financial statements bagian yang tidak terpisahkan dari laporan keuangan konsolidasian. which are an integral part of the consolidated financial statements.

- 1 - PT SMARTFREN TELECOM Tbk PT SMARTFREN TELECOM Tbk DAN ENTITAS ANAK AND ITS SUBSIDIARIES Laporan Posisi Keuangan Konsolidasian Consolidated Statements of Financial Position 31 Maret 2014 (Tidak Diaudit) dan 31 Desember 2013 (Diaudit) March 31, 2014 (Unaudited) and December 31, 2013 (Audited) (Angka-angka Disajikan dalam Rupiah, kecuali Dinyatakan Lain) (Figures are Presented in Rupiah, unless Otherwise Stated)

Catatan/ 31 Maret 2014/ 31 Desember 2013/ Notes March 31, 2014 December 31, 2013

LIABILITAS DAN EKUITAS LIABILITIES AND EQUITY

LIABILITAS LIABILITIES

LIABILITAS LANCAR CURRENT LIABILITIES Pinjaman jangka pendek 14,24,41 1.869.115.600.000 1.997.777.100.000 Short-term loans Utang usaha 15,24,25,41 Trade accounts payable Pihak berelasi 10.928.015 - Related parties Pihak ketiga 499.564.483.264 436.095.921.473 Third parties Utang lain-lain 16,24,40,41 351.636.037.314 298.831.250.947 Other accounts payable Utang pajak 17 9.840.667.264 10.093.976.941 Taxes payable Beban akrual 18,24,41,43 1.810.720.756.152 1.631.277.045.320 Accrued expenses Pendapatan diterima dimuka 19 92.527.076.856 95.731.934.818 Unearned revenues Uang muka pelanggan 20 75.627.722.686 95.371.767.319 Advances from customers Bagian yang jatuh tempo dalam satu tahun: Current portion of: Utang pinjaman 21,24,25,41 767.230.202.276 819.894.789.923 Loans payable Liabilitas sewa pembiayaan 23,24,41 147.143.985.066 154.476.644.445 Lease liabilities Jumlah Liabilitas Lancar 5.623.417.458.893 5.539.550.431.186 Total Current Liabilities

LIABILITAS TIDAK LANCAR NON-CURRENT LIABILITIES Bagian yang jatuh tempo lebih dari satu tahun - setelah dikurangi bagian yang akan jatuh Long-term portion - net of current tempo dalam waktu satu tahun: portion of: Utang pinjaman 21,24,25,41 3.607.030.623.121 3.852.323.304.771 Loans payable Liabilitas sewa pembiayaan 23,24,41 1.323.943.933.688 1.351.900.942.284 Lease liabilities Utang obligasi 22,24,41 1.154.361.440.057 1.157.569.990.557 Bonds payable Liabilitas derivatif 22,24,41 686.326.062.899 693.605.795.916 Derivative liability Liabilitas imbalan kerja jangka panjang 35 156.691.097.500 152.664.493.000 Long-term employee benefits liability Liabilitas tidak lancar lainnya 22,24,27,41 66.259.433.780 68.933.522.431 Other non-current liabilities Jumlah Liabilitas Tidak Lancar 6.994.612.591.045 7.276.998.048.959 Total Non-current Liabilities

Jumlah Liabilitas 12.618.030.049.938 12.816.548.480.145 Total Liabilities

EKUITAS EQUITY

Ekuitas yang dapat diatribusikan kepada Equity Attributable to the Owners of pemilik entitas the Company Modal saham: Capital stock: - Seri A - nilai nominal Rp 2.000 per saham - Series A - Rp 2,000 par value per share - Seri B - nilai nominal Rp 1.000 per saham - Series B - Rp 1,000 par value per share - Seri C - nilai nominal Rp 100 per saham - Series C - Rp 100 par value per share Modal dasar: Authorized: - Seri A - 1.011.793.622 saham - Series A - 1,011,793,622 shares - Seri B - 6.793.548.068 saham - Series B - 6,793,548,068 shares - Seri C - 189.528.646.880 saham - Series C - 189,528,646,880 shares Modal ditempatkan dan disetor: Issued and paid-up: - Seri A - 1.011.793.622 saham - Series A - 1,011,793,622 shares - Seri B - 4.920.163.075 saham - Series B - 4,920,163,075 shares - Seri C - 11.863.913.394 saham 25 8.130.141.658.400 8.130.141.658.400 - Series C - 11,863,913,394 shares Tambahan modal disetor - bersih 26 717.848.242.163 717.848.242.163 Additional paid-up capital - net Obligasi wajib konversi 27 4.700.000.000.000 4.700.000.000.000 Mandatory convertible bonds Saldo laba (defisit) Retained earnings (deficit) Ditentukan penggunaannya 100.000.000 100.000.000 Appropriated Tidak ditentukan penggunaannya (10.497.970.643.159) (10.499.067.701.498) Unappropriated

3.050.119.257.404 3.049.022.199.065 Kepentingan non-pengendali 931.505.945 922.750.347 Non-controlling interests Jumlah Ekuitas 3.051.050.763.349 3.049.944.949.412 Total Equity

JUMLAH LIABILITAS DAN EKUITAS 15.669.080.813.287 15.866.493.429.557 TOTAL LIABILITIES AND EQUITY

- 2 - PT SMARTFREN TELECOM Tbk PT SMARTFREN TELECOM Tbk DAN ENTITAS ANAK AND ITS SUBSIDIARIES Laporan Laba (Rugi) Komprehensif Konsolidasian Consolidated Statements of Comprehensive Income (Loss) Untuk Periode Triwulan yang Berakhir For the Quarter Periods Ended 31 Maret 2014 dan 2013 (Tidak Diaudit) March 31, 2014 and 2013 (Unaudited) (Angka-angka Disajikan dalam Rupiah, kecuali Dinyatakan Lain) (Figures are Presented in Rupiah, unless Otherwise Stated)

Catatan/ 2014 2013 Notes (3 bulan/ 3 months) (3 bulan/ 3 months)

PENDAPATAN USAHA 28,40,42 722.881.240.886 556.968.610.619 OPERATING REVENUES

BEBAN USAHA OPERATING EXPENSES Operasi, pemeliharaan dan jasa Operations, maintenance and telekomunikasi 29,40 480.417.072.813 396.874.734.286 telecommunication services Penyusutan dan amortisasi 10,11,30 282.050.769.272 262.467.591.835 Depreciation and amortization Penjualan dan pemasaran 31 124.956.675.315 111.767.067.055 Sales and marketing Karyawan 32 95.619.211.338 87.231.113.667 Personnel Umum dan administrasi 33 27.338.086.849 22.679.800.749 General and administrative

Jumlah Beban Usaha 1.010.381.815.587 881.020.307.592 Total Operating Expenses

RUGI USAHA (287.500.574.701) (324.051.696.973) LOSS FROM OPERATIONS

PENGHASILAN (BEBAN) LAIN-LAIN OTHER INCOME (EXPENSES) Keuntungan (kerugian) kurs mata uang asing - bersih 407.508.016.953 (7.409.440.215) Gain (loss) on foreign exchange - net Penghasilan bunga 10.988.286.356 608.754.821 Interest income Keuntungan (kerugian) dari perubahan Gain (loss) on change in fair value of nilai wajar opsi konversi 22 7.279.733.017 (3.258.268.674) conversion option Keuntungan penjualan dan Gain on sale and disposal of penghapusan aset tetap 10 152.788.266 1.847.301.158 property and equipment Beban bunga dan keuangan lainnya 34 (101.945.400.500) (93.294.614.400) Interest expense and other financial charges Lain-lain - bersih (46.672.681.150) 16.620.161.183 Others - net

Penghasilan (Beban) Lain-lain - Bersih 277.310.742.942 (84.886.106.127) Other Income (Expenses) - Net

RUGI SEBELUM PAJAK (10.189.831.759) (408.937.803.100) LOSS BEFORE TAX

PENGHASILAN PAJAK TANGGUHAN 36 11.295.645.696 53.355.391.665 DEFERRED TAX BENEFIT

LABA (RUGI) PERIODE BERJALAN 1.105.813.937 (355.582.411.435) NET INCOME (LOSS) FOR THE PERIOD

PENDAPATAN KOMPREHENSIF LAIN -- OTHER COMPREHENSIVE INCOME

JUMLAH LABA (RUGI) KOMPREHENSIF 1.105.813.937 (355.582.411.435) TOTAL COMPREHENSIVE INCOME (LOSS)

Laba (rugi) bersih/ laba (rugi) komprehensif Net income (loss)/ comprehensive income yang dapat diatribusikan kepada: (loss) attributable to: Pemilik perusahaan 1.097.058.339 (355.533.903.257) Owners of the Company Kepentingan non-pengendali 8.755.598 (48.508.178) Non-controlling interests

1.105.813.937 (355.582.411.435)

LABA (RUGI) PER SAHAM DASAR 38 0,07 (5,97) BASIC INCOME (LOSS) PER SHARE

- 3 - PT SMARTFREN TELECOM Tbk DAN ENTITAS ANAK PT SMARTFREN TELECOM Tbk AND ITS SUBSIDIARIES Laporan Perubahan Ekuitas Konsolidasian Consolidated Statements of Changes in Equity Untuk Periode Triwulan yang Berakhir 31 Maret 2014 dan 2013 (Tidak Diaudit) For the Quarter Periods Ended March 31, 2014 and 2013 (Unaudited) (Angka-angka Disajikan dalam Rupiah, kecuali Dinyatakan Lain) (Figures are Presented in Rupiah, unless Otherwise Stated)

Ekuitas yang Dapat Diatribusikan kepada Pemilik Entitas Induk/ Equity Attributable to the Owners of the Company Obligasi Wajib Saldo Laba (Defisit)/ Modal Ditempatkan Tambahan Konversi/ Retained Earnings (Deficit) Kepentingan dan Disetor/ Modal Disetor/ Mandatory Ditentukan Tidak Ditentukan non-pengendali/ Jumlah Ekuitas Catatan/ Issued and Additional Paid-up Convertible Penggunaannya/ Penggunaannya/ Jumlah/ Non-controlling (Defisiensi Modal)/ Notes Paid-up Capital Capital Bonds Appropriated Unappropriated Total interests Total Equity

Saldo per 31 Desember 2012 8.130.141.658.400 717.848.242.163 4.100.000.000.000 100.000.000 (7.964.888.864.473) 4.983.201.036.090 1.207.142.041 4.984.408.178.131 Balance as of December 31, 2012

Penerbitan obligasi wajib konversi 27 - - 200.000.000.000 - - 200.000.000.000 - 200.000.000.000 Issuance of mandatory convertible bonds

Rugi bersih/rugi komprehensif - - - - (355.533.903.257) (355.533.903.257) (48.508.178) (355.582.411.435) Net loss/comprehensive loss

Saldo per 31 Maret 2013 8.130.141.658.400 717.848.242.163 4.300.000.000.000 100.000.000 (8.320.422.767.730) 4.827.667.132.833 1.158.633.863 4.828.825.766.696 Balance as of March 31, 2013

Saldo per 31 Desember 2013 8.130.141.658.400 717.848.242.163 4.700.000.000.000 100.000.000 (10.499.067.701.498) 3.049.022.199.065 922.750.347 3.049.944.949.412 Balance as of December 31, 2013

Laba bersih/laba komprehensif - - - - 1.097.058.339 1.097.058.339 8.755.598 1.105.813.937 Net income/comprehensive income

Saldo per 31 Maret 2014 8.130.141.658.400 717.848.242.163 4.700.000.000.000 100.000.000 (10.497.970.643.159) 3.050.119.257.404 931.505.945 3.051.050.763.349 Balance as of March 31, 2014

- 4 - PT SMARTFREN TELECOM Tbk PT SMARTFREN TELECOM Tbk DAN ENTITAS ANAK AND ITS SUBSIDIARIES Laporan Arus Kas Konsolidasian Consolidated Statements of Cash Flows Untuk Periode Triwulan yang Berakhir For the Quarter Periods Ended 31 Maret 2014 dan 2013 (Tidak Diaudit) March 31, 2014 and 2013 (Unaudited) (Angka-angka Disajikan dalam Rupiah, kecuali Dinyatakan Lain) (Figures are Presented in Rupiah, unless Otherwise Stated)

2014 2013 (3 bulan/ 3 months) (3 bulan/ 3 months)

ARUS KAS DARI AKTIVITAS OPERASI CASH FLOWS FROM OPERATING ACTIVITIES Penerimaan kas dari pelanggan 1.227.654.292.389 703.473.915.572 Cash receipts from customers Pembayaran kas kepada karyawan (79.055.638.232) (59.861.870.441) Cash paid to employees Pembayaran kas kepada pemasok (1.007.058.627.816) (718.006.755.777) Cash paid to suppliers

Kas digunakan untuk operasi 141.540.026.341 (74.394.710.646) Net cash used in operations Penerimaan bunga 10.988.286.356 608.754.821 Interest received Pembayaran pajak penghasilan (60.744.160.924) (8.606.790.728) Income tax paid Pembayaran beban bunga dan keuangan (61.397.395.562) (64.147.132.455) Interest expense and financial charges paid Kas Bersih Diperoleh dari (Digunakan untuk) Aktivitas Operasi 30.386.756.211 (146.539.879.008) Net Cash Provided by (Used in) Operating Activities

ARUS KAS DARI AKTIVITAS INVESTASI NET CASH FLOWS FROM INVESTING ACTIVITIES Hasil bersih penjualan aset tetap 343.951.712 26.063.284.978 Net proceeds from sale of property and equipment Perolehan aset tidak berwujud (401.049.329) (62.926.923) Acquisitions of intangible assets Pembayaran uang muka (10.264.790.503) (89.472.837.401) Payment for advances Perolehan aset tetap (75.201.213.195) (94.523.366.348) Acquisitions of property and equipment

Kas Bersih Digunakan untuk Aktivitas Investasi (85.523.101.315) (157.995.845.694) Net Cash Used in Investing Activities

ARUS KAS DARI AKTIVITAS PENDANAAN CASH FLOWS FROM FINANCING ACTIVITIES Pembayaran atas liabilitas sewa pembiayaan (35.289.667.975) (29.297.414.881) Payment of lease liabilities Penerimaan dari penerbitan obligasi Proceeds from issuance of mandatory wajib konversi - 200.000.000.000 convertible bonds Penerimaan dari fasilitas pinjaman - 81.441.790.026 Proceeds from loan facilities Kas Bersih Diperoleh dari (Digunakan untuk) Aktivitas Pendanaan (35.289.667.975) 252.144.375.145 Net Cash Provided by (Used in) Financing Activities

PENURUNAN BERSIH KAS DAN SETARA KAS (90.426.013.079) (52.391.349.557) NET DECREASE IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS KAS DAN SETARA KAS AWAL PERIODE 915.087.107.062 141.301.222.795 AT THE BEGINNING OF THE PERIOD Pengaruh perubahan kurs mata uang asing (7.235.637.147) 20.417.887 Effect of foreign exchange rate changes

CASH AND CASH EQUIVALENTS AT THE KAS DAN SETARA KAS AKHIR PERIODE 817.425.456.836 88.930.291.125 END OF THE PERIOD

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PT SMARTFREN TELECOM Tbk PT SMARTFREN TELECOM Tbk DAN ENTITAS ANAK AND ITS SUBSIDIARIES Catatan atas Laporan Keuangan Konsolidasian Notes to Consolidated Financial Statements 31 Maret 2014 (Tidak Diaudit) dan March 31, 2014 (Unaudited) and 31 Desember 2013 (Diaudit) serta untuk December 31, 2013 (Audited) and Periode Triwulan yang Berakhir The Quarter Periods Ended 31 Maret 2014 dan 2013 (Tidak Diaudit) March 31, 2014 and 2013 (Unaudited) (Angka-angka Disajikan dalam Rupiah, (Figures are Presented in Rupiah, kecuali Dinyatakan Lain) unless Otherwise Stated)

1. Umum 1. General

a. Pendirian dan Informasi Umum a. Establishment and General Information

PT Smartfren Telecom Tbk (“Perusahaan”), PT Smartfren Telecom Tbk dahulu PT Mobile-8 Telecom Tbk, didirikan (the “Company”), formerly PT Mobile-8 berdasarkan akta No. 11 tanggal Telecom Tbk, was established based on 2 Desember 2002 dari Imas Fatimah, S.H., Notarial Deed No. 11 dated notaris di Jakarta. Akta pendirian tersebut December 2, 2002 of Imas Fatimah, S.H., telah disahkan oleh Menteri Kehakiman notary in Jakarta. The Deed of dan Hak Asasi Manusia Republik Establishment was approved by the Indonesia dalam Surat Keputusannya Minister of Justice and Human Rights of the No. C-24156.HT.01.01.TH.2002 tanggal Republic of Indonesia in his Decision Letter 16 Desember 2002, yang dimuat dalam No. C-24156.HT.01.01.TH.2002 dated Tambahan No. 1772, Berita Negara December 16, 2002, as stated in Republik Indonesia No. 18 tanggal Supplement No. 1772 to State Gazette of 3 Maret 2003. Anggaran Dasar Perusahaan the Republic of Indonesia No. 18, dated telah mengalami beberapa kali perubahan. March 3, 2003. The Company’s Articles of Perubahan terakhir dilakukan dengan akta Association have been amended No. 119 tanggal 28 Juni 2013 dari Linda several times, most recently through Herawati, S.H., notaris di Jakarta, Notarial Deed No. 119 dated June 28, 2013 mengenai perubahan susunan pengurus of Linda Herawati, S.H., notary in Jakarta, Perusahaan. Pemberitahuan perubahan concerning the change in the Company’s tersebut telah diterima dan dicatat dalam management. The notification of the database Sistem Administrasi Badan changes in the Company’s Articles of Hukum Kementerian Hukum dan Hak Asasi Association was received and registered Manusia Republik Indonesia dengan in the Legal Entities Administration No. AHU-AH.01.10-34619 tanggal System of Minister of Justice and 23 Agustus 2013. Human Rights of the Republic of Indonesia No. AHU-AH.01.10-34619 dated August 23, 2013.

Berdasarkan akta No. 90 tanggal Based on the Notarial Deed No. 90 dated 28 Maret 2011 dari Linda Herawati, S.H., March 28, 2011 of Linda Herawati, S.H., notaris di Jakarta Pusat, Perusahaan telah a notary in Jakarta, the Company has melakukan perubahan nama perusahaan changed its name into PT Smartfren menjadi PT Smartfren Telecom Tbk. Telecom Tbk. The Notarial Deed has Perubahan ini telah disahkan oleh Menteri been approved by the Minister of Justice Kehakiman dan Hak Asasi Manusia and Human Rights of the Republic Republik Indonesia dalam Surat of Indonesia in his Decision Letter Keputusannya No. AHU-16947.AH.01.02. No. AHU-16947.AH.01.02.Year 2011 dated Tahun 2011 tanggal 4 April 2011 dan April 4, 2011 and the changes in the pelaporan perubahan data Perseroan telah Company’s profile have been received and diterima dan disetujui oleh Kementerian approved by the Minister of Justice Hukum dan Hak Asasi Manusia and Human Rights of the Republic Republik Indonesia dalam Surat of Indonesia in his Decision Keputusannya No. AHU-AH.01.10-10987 Letter No. AHU-AH.01.10-10987 dated tanggal 12 April 2011. April 12, 2011.

Perusahaan dan entitas anak selanjutnya The Company and its subsidiaries are disebut Grup . herein after referred to as the Group .

- 6 - PT SMARTFREN TELECOM Tbk PT SMARTFREN TELECOM Tbk DAN ENTITAS ANAK AND ITS SUBSIDIARIES Catatan atas Laporan Keuangan Konsolidasian Notes to Consolidated Financial Statements 31 Maret 2014 (Tidak Diaudit) dan March 31, 2014 (Unaudited) and 31 Desember 2013 (Diaudit) serta untuk December 31, 2013 (Audited) and Periode Triwulan yang Berakhir The Quarter Periods Ended 31 Maret 2014 dan 2013 (Tidak Diaudit) March 31, 2014 and 2013 (Unaudited) (Angka-angka Disajikan dalam Rupiah, (Figures are Presented in Rupiah, kecuali Dinyatakan Lain) unless Otherwise Stated)

Sesuai dengan ketentuan Pasal 3 In accordance with Article 3 of the Articles Anggaran Dasar Perusahaan, maksud dan of Association, the Company’s objective tujuan Perusahaan adalah melakukan and purpose is to conduct business in the kegiatan usaha dalam bidang area of telecommunication, all of which telekomunikasi, yang seluruhnya telah have been held by the Company with the diselenggarakan oleh Perusahaan dengan following scope of activities: ruang lingkup kegiatan usaha adalah sebagai berikut:

a. Menawarkan jasa telekomunikasi a. Offer telecommunication services in di dalam wilayah Republik Indonesia; the Republic of Indonesia;

b. Menyediakan berbagai produk b. Provide multimedia products and multimedia dan jasa terkait lainnya, related services, including but not termasuk tetapi tidak terbatas pada limited to direct and indirect sales of penjualan secara langsung maupun voice services, data/image and other tidak langsung voice services , mobile commercial services; data /image dan jasa-jasa komersial mobile lainnya;

c. Membangun, menyewakan dan c. Develop, lease and own a wireless memiliki jaringan telekomunikasi telecommunications network in tanpa kabel di frekuensi 800 MHz 800 MHZ band based exclusively on yang secara eksklusif berbasis Code Division Multiple Access teknologi Code Division Multiple (CDM