Telkom Indonesia - 20-F annual report

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 20-F


o		REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934


þ		ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2009


o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


o		SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company report

Commission file number 1-14406

Perusahaan Perseroan (Persero)
P.T. Telekomunikasi Indonesia Tbk.

(Exact name of Registrant as specified in its charter)

Telecommunications Indonesia

(a state-owned public limited liability company)
(Translation of Registrant’s name into English)

Republic of Indonesia
(State or other jurisdiction of incorporation or organization)

Jalan Japati, 1
Bandung 40133
Indonesia
(62) (22) 452-1510
(62) (21) 521-5109*
(Address of Registrant’s principal executive offices)

Securities registered or to be registered pursuant to Section 12(b) of the Act.


Title of		Name of each exchange
Each class		on which registered

American Depositary Shares representing Series B Shares, par value 250 Rupiah per share		New York Stock Exchange
Series B Shares, par value 250 Rupiah per share		New York Stock Exchange**

Securities registered or to be registered pursuant to Section 12(g) of the Act. None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act. None

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report:


Series A Dwiwarna Share, par value 250 Rupiah per share			1
Series B Shares, par value 250 Rupiah per share			19,669,424,779

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes þ No o

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes o No þ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o

Indicate by check mark whether the registrant is a large accelerate filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer þ		Accelerated filer o		Non-accelerated filer o

Indicate by check mark which financial statement item the Registrant has elected to follow. Item 17 o Item 18 þ

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ


*		Investor Relations Unit, Graha Citra Caraka, JI. Gatot Subroto, No. 52, 5th Floor, Jakarta 12570.

**		The Series B Shares were registered in connection with the registration of the American Depositary Shares. The Series B Shares are not listed for trading on the New York Stock Exchange.

TABLE OF CONTENTS


PART I
ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS			1
ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE			1
ITEM 3. KEY INFORMATION			1
ITEM 4. INFORMATION ON THE COMPANY			1
ITEM 4A. UNRESOLVED STAFF COMMENTS			2
ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS			2
ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES			2
ITEM 7. MAJOR STOCKHOLDERS AND RELATED PARTY TRANSACTIONS			3
ITEM 8. FINANCIAL INFORMATION			3
ITEM 9. THE OFFER AND LISTING			4
ITEM 10. ADDITIONAL INFORMATION			4
ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK			5
ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES			5
PART II
ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES			5
ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS			5
ITEM 15. CONTROLS AND PROCEDURES			5
ITEM 16. RESERVED			5
ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT			6
ITEM 16B. CODE OF ETHICS			6
ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES			6
ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES			6
ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS			6
ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT			6
ITEM 16G. CORPORATE GOVERNANCE			6
PART III
ITEM 17. FINANCIAL STATEMENTS			6
ITEM 18. FINANCIAL STATEMENTS			6
ITEM 19. EXHIBITS			7
SIGNATURES
Ex-8.1 List of Subsidiaries of TELKOM
Ex-12.1 Certification pursuant to Section 302
Ex-12.2 Certification pursuant to Section 302
Ex-13.1 Certification pursuant to Section 906
Ex-13.2 Certification pursuant to Section 906

This annual report on Form 20-F incorporates by reference certain information contained in the Annual Report of PT Telekomunikasi Indonesia Tbk. (the “Company” or “TELKOM”) for the financial year ended December 31, 2009, dated April 8, 2010 (“2009 Annual Report”) furnished on Form 6-K on April 8, 2010 (“Report on Form 6-K”). The information that is incorporated herein by reference is set forth below. Information from the 2009 Annual Report furnished in the Report on Form 6-K not referenced below is not incorporated by reference herein.

PART I

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

Not applicable.

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable.

ITEM 3. KEY INFORMATION

A. Selected Financial Data

The information set forth under the headings “Financial Highlights” on pages 2 — 9 and “Exchange Controls” on pages 118 — 119 in the 2009 Annual Report furnished in the Report on Form 6-K is incorporated herein by reference. The reconciliation of data to U.S. generally accepted accounting principles are set forth at Notes 53 and 54 to the Consolidated Financial Statements in the 2009 Annual Report furnished in the Report on Form 6-K.

B. Capitalization and Indebtedness

Not applicable.

C. Reason for the Offer and Use of Proceeds

Not applicable.

D. Risk Factors

The information set forth under the headings “Risk Factors” on pages 47 — 54 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

ITEM 4. INFORMATION ON THE COMPANY

A. History and Development of the Company

The information set forth under the heading “History of the Company” on pages 171— 172 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

B. Business Overview

The information set forth under the headings “Operational Overview” on pages 59 — 71, “Regulations” on pages 32 — 37, “Competition” on pages 37 — 39, “Licenses” on pages 39 — 42, “Tariffs and Interconnection Charges” on pages 42— 46 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

C. Organizational Structure

The information set forth under the heading “Business and Organizational Structure—Information on Subsidiaries and Associated Companies” on pages 173 — 182 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

D. Property, Plant and Equipment

The information set forth under the heading “Business and Organizational Structure—Property, Plant and Equipment” on page 186 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

ITEM 4A. UNRESOLVED STAFF COMMENTS

Not applicable.

ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

A. Operating Results

The information set forth under the heading “Management’s Discussion and Analysis—Operating Results Overview” (along with the preceding paragraph) on pages 80 — 97 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

B. Liquidity and Capital Resources

The information set forth under the heading “Management’s Discussion and Analysis—Liquidity and Capital Resources” on pages 99 —106 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

C. Research and Development, Patents and Licenses, etc.

The information set forth under the heading “Management’s Discussion and Analysis—Research and Development and Intellectual Property” on page109 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

D. Trend Information

The information set forth under the heading “Management’s Discussion and Analysis—Trend Information” on pages 109 —110 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

E. Off-Balance Sheet Arrangements

The information set forth under the heading “Management’s Discussion and Analysis—Off-Balance Sheet Arrangements” on page 110 and Note 48 to the Consolidated Financial Statements in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

F. Tabular Disclosure of Contractual Obligations

The information set forth under the heading “Management’s Discussion and Analysis—Contractual Obligations” on pages 110 —111 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

G. Safe Harbor

Not applicable.

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

A. Directors and Senior Management

The information set forth under the headings “Telkom’s Good Corporate Governance Structure” on pages 123 —138; “Corporate Data—Profile of the BoC” on pages 177 — 178; and “Corporate Data—Profile of the BoD” on pages 178 —179 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

B. Compensation

The information set forth under the headings “Compensation” on pages 146 and “Our People: Telkom’s Excellent Resources—Competitive Remuneration” on pages 169 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

C. Board Practices

The information set forth under the headings “Corporate Governance—Board of Directors” on page127; “Corporate Data—Profile of the BoC” on pages 177 — 178; “Corporate Data—Profile of the BoD” on pages 178 —179; “Report of Audit Committee” on pages 131 — 132; “Report of the Nomination and Remuneration Committee” on page 134; and “Report of the Committee on Planning and Risk Assessment” on pages 137 —138 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

D. Employees

The information set forth under the heading “Human Resources Profile” on pages 163 — 166; “Employee Relations Management” on page 168; and “Additional Financial Information—Material Litigation” on pages 112 — 113 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

E. Share Ownership

The information set forth under the heading “Share Ownership” on page 147 in the 2009Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

ITEM 7. MAJOR STOCKHOLDERS AND RELATED PARTY TRANSACTIONS

A. Major Shareholders

The information set forth under the headings “Composition of Share Ownership” and “Relationship with the Government and Governmental Agencies” on pages 17 — 18 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

B. Related Party Transactions

The information set forth under the headings “Related Party Transactions” on page 20; and Note 44 to the Consolidated Financial Statements in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

C. Interest of Experts and Counsel

Not applicable.

ITEM 8. FINANCIAL INFORMATION

A. Consolidated statements and other financial information

The information set forth under the heading “Consolidated Financial Statements” on pages F-1 and F-3 — F-172, “Common Stock Highlights — Dividend Policy” on page 10 and “Additional Financial Information—Material Litigation” on pages 112 — 113 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

B. Significant changes

The information set forth under Note 51 to the Consolidated Financial Statements in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

ITEM 9. THE OFFER AND LISTING

A. Offer and listing details

The information set forth under the headings “Common Stock Highlights—Share Price Information” and “—ADS Price Information” on pages 13 — 14 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

B. Plan of distribution

Not applicable.

C. Markets

The information set forth under the heading “Common Stock Highlights—Markets” on pages 15 — 16 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

D. Selling Stockholders

Not applicable.

E. Dilution

Not applicable.

F. Expenses of the issue

Not applicable.

ITEM 10. ADDITIONAL INFORMATION

A. Share capital

The information set forth under the heading “Common Stock Highlights — Composition of Share Ownership” on page 17 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

B. Memorandum and Articles of Association

The information set forth under the heading “Additional Financial Information—Memorandum and Articles of Association” on pages 114 — 115 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

C. Material Contracts

The information set forth under the heading “Additional Financial Information—Material Contracts” on page 117 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

D. Exchange Controls

The information set forth under the heading “Additional Financial Information—Exchange Controls” on pages 118 — 119 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

E. Taxation

The information set forth under the heading “Additional Financial Information—Taxation” on pages 119 —122 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

F. Dividends and Paying Agents

Not applicable.

G. Statement by Experts

Not applicable.

H. Documents on Display

The information set forth under the heading “Additional Financial Information—Documents on Display” on page 161 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

I. Subsidiary Information

Not applicable.

ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

A. Disclosure About Market Risk

The information set forth under the heading “Quantitative and Qualitative Disclosure About Market Risk” on pages 55 — 58 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

A. Debt Securities

Not applicable.

B. Warrants and Rights

Not applicable.

C. Other Securities

Not applicable.

D. American Depositary Shares

The information set forth under the heading “Trading on the NYSE, LSE and Depositary Fees” on pages 16 — 17 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

PART II

ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

There are no defaults, dividend arrearages and delinquencies to which this Item applies.

ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

Not applicable.

ITEM 15. CONTROLS AND PROCEDURES

The information set forth under the heading “Controls and Procedures” on page 162 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

ITEM 16. RESERVED

ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT

The information set forth under the heading “Audit Committee Financial Expert” on page 130 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

ITEM 16B. CODE OF ETHICS

The information set forth under the heading “Code of Ethics” on page 144 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information set forth under the heading “Principal Accountant Fees and Services” on page 161 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

The information set forth under the heading “Exemptions from the US Listing Standards for Audit Committees” on page 130 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

The information set forth under the heading “Purchases of Equity Securities by the Issuer and Affiliated Purchasers” on page 20 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference.

ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT

Not applicable.

ITEM 16G. CORPORATE GOVERNANCE

The information set forth under the heading “Summary of Significant Differences Between Indonesian Corporate Governance Practices and the NYSE’s Corporate Governance Standards” on page 98 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference

PART III

ITEM 17. FINANCIAL STATEMENTS

Not applicable.

ITEM 18. FINANCIAL STATEMENTS

The financial information set forth under the heading “Consolidated Financial Statements” on pages F-1 and F-3 — F-172 in the 2009 Annual Report contained in the Report on Form 6-K is incorporated herein by reference. The audit opinion appearing on page F-2 has been prepared solely for Indonesian financial reporting purposes and is not incorporated herein by reference.

ITEM 19. EXHIBITS

The following exhibits are filed as part of this annual report:

Index to Exhibits


1.1		Memorandum and Articles of Association of TELKOM, as amended on July 15, 2008 (1)

4.1		Procurement and Installation of the JaKa2LaDeMa Capacity Ring between TELKOM and NSW-Fujitsu Consortium dated as of December 30, 2008 (1)

8.1		List of Subsidiaries of TELKOM

12.1		Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934

12.2		Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange act of 1934

13.1		Certification of the Chief Executive Officer pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

13.2		Certification of the Chief Financial Officer pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

15.1		Consolidated Financial Statements for the years ended December 31, 2007, 2008 and 2009 and as of December 31, 2008 and 2009 (2)


(1)		Incorporated herein by reference to our annual report on Form 20-F for the fiscal year ended December 31, 2008 filed with the U.S. Securities and Exchange Commission on May 11, 2009.

(2)		Incorporated herein by reference to the 2009 Annual Report contained in the Report on Form 6-K.

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

Perusahaan Perseroan (Persero)
P.T. TELEKOMUNIKASI INDONESIA,TBK
(Registrant)

By: /s/ Rinaldi Firmansyah
Rinaldi Firmansyah
President Director and Chief Executive Officer

Date: April 8, 2010

Telkom Indonesia - 20-F annual report

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