Corporate Social Responsibility - XL

Optimism in the spirit and potentials of the Indonesian people has urged XL to answer the call to build a stronger nation. A prosperous and strong nation is the aspiration of every citizen. In XLs view, this aspiration will be feasible for Indonesia, a country with abundant potential and resources. Based on this belief, and in line with its capabilities, XL is committed to extending its reach and contributing directly to the development of the Indonesian community. To make their participation effective and maximize the real benefits of their contribution, XL has carried out thorough planning, execution, and monitoring of its Corporate Social Responsibility (CSR) program. In fact, it has started to direct its CSR program as a continuous and integrated part of the Companys plan. As a company with business in telecommunications and closely related with the technology, they aim to plan and optimize our related resources to support the implementation of their CSR program. Of equal importance, they understand that in a developing country like Indonesia, parts of their society are still in need of support and assistance to improve the welfare. Translating this idea, XL has realized educational development through its CSR program, Indonesia Berprestasi, and has simultaneously carried out community development and other activities. They have specifically developed Indonesia Berprestasi to become a substantial and comprehensive CSR program. The program is rooted in our optimism toward the potential, innovative spirit and enthusiasm of Indonesians. The program has two focuses, public education and Information and Communications Technology (ICT) education, and was started in 2006. Over the past two years we have created numerous programs and activities, and throughout 2008 they carried out the below activities under Indonesia Berprestasi. Indonesia Berprestasi Awards (IBA) IBA is an accolade presented by XL to the Indonesian citizens who have made a significant contribution to the environment and community in their respective fields. The IBA program commenced in 2007, and the selection of winners undergoes a series of assessments by an independent panel of observers. The process has allowed the Company to discover and appreciate individuals who have truly made inspiring changes for a stronger nation. Computersfor Our Schools Komputer untuk Sekolah was designed as an integrated and sustainable five-year scheme. 2008 was the first Launching of Indonesia Berprestasi 2008 year in which XL provided computing facilities and internet connections through the program in around 100 education institutions and schools throughout Indonesia. The target was to assist 60 schools per year and up to 300 students per year.

XL strong endeavor for GCG enhancement is also shown by revitalizing the enforcement of Clean Company Program and Whistleblowing. These policies are implemented of throughout the organizations including each and every individual as well as their business partners and vendors. Moreover, the Company also develops system to ascertain a conducive and ethical business environment with all stakeholders. And last but not least, the kickoff of Good Corporate Governance Program comprises of assessment and series of workshops for our Boards and senior management and basic introduction to our new-hired employees. XL has mapped this program into a five-year plan and has succeeded in promoting participation by our three vendors PT Sun Microsystems Indonesia, PT Huawei Tech. Investment, and PT Alita Praya Mitra to be the supporting members of ICGN. In Komputer untuk Sekolah, they also partnered with three other supporting nonprofit organizations: UN Global Compact, The British Council, and Nurani Dunia Foundation. Provisionof MultiplexerTransmissionDevices XL donated Multiplexer Transmission Devices, a basic cellular technology, complemented with operating trainings, to 14 universities throughout the nation. The devices have greatly benefited the students working training. EducationalIncentives In cooperation with Dharma Wanita Pusat, XL granted Educational Incentives to 42 Indonesian underprivileged students with excellent academic achievements. SmartPark XL built Taman Pintar, a learning centre that helps the children to learn about telecommunications, in Yogyakarta. Constructionof a School,ReadingParkand Library XL built a school, reading park, and library at Permata School in Sentani, Papua, and donated school equipment. Provisionof MobileLibrary Together with Nurani Dunia Foundation, XL donated a mobile library, which travels to neighborhoods in and around Jakarta. XL also donated various books to Jendela Dunia Reading Park, Cimanggis and Gola Gongs World House, Serang, Banten to promote reading interest among Indonesian children. Appreciationfor Studentswith EducationalAchievements XL awarded eleven students with outstanding educational achievements with cellular phones and a one-year supply of top-up vouchers. CommunityDevelopmentand otherCSRActivities XL is continuously monitoring what is happening in its surrounding environment and takes an active involvement in the community and social activities.

CommunityDevelopment XL defined the community as a comprehensive society, consisting of their stakeholders and the people involved in the Companys business. They conducted numerous activities in this area throughout 2008. For example, for the community around XLs operational areas or BTS, we helped build facilities, providing health care and sponsoring sports and religious events. XL also recognize the importance of empowering our business partners, such as their retailers and those involved in our distribution channels. They open opportunities for them to grow, and subsequently to have a better life by working together with XL. To this end, they held capacity building training programs, channeled donations for certain events, and participated in other programs. DisasterRelief Seeing the natural disasters, XL take prompt action to alleviate the suffering of the affected community. They have established standard operating procedures to execute their assistance and to ensure that our efforts are carried out in the best way possible. In 2008 XL dispatched assistance in form of funding and goods in various parts of Indonesia that were struck by natural disasters, such as the earthquake in Bima (West Nusa Tenggara), the landslide in Cianjur, and the floods in Banjarmasin, Bojonegoro, and other areas. PhilanthropicActivities XL align our philanthropic activities with their competence in telecommunications. In this way, they regularly provide free public telephones (TUG), internet connections, and other facilities; assist children with special needs, communities in remote areas, as well as alleviate poverty. Along with its business growth, XLs commitment in CSR will progress with the possibilities the Company encounters to expand our outreach and participation. In 2008, we increased the scope of their CSR program by becoming an active member of the UN Indonesia Global Compact Network (ICGN). Through ICGN, XL is committed to becoming an agent of change in accelerating the countrys transformation and to actively promoting, facilitating and implementing the ten UN Global basic principles as stated in the UNs Millennium Development Goals in Indonesia. Another step XL has taken to increase the impact of its CSR program was by encouraging all of their employees to take part in the corporate CSR programs. The participation was realized through volunteering in the educational programs, assisting with disaster relief and becoming blood donations. XL also open channels for XL customers to take part in our social programs. In 2008, XL facilitated SMS donations for social or special events, such as SMS Infaq (during Ramadhan), SMS Gema Natal (Christmas) and SMS donations in collaboration with

UNICEF. All income collected through these schemes has been channeled to the respective organizations. The UN Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment, and anti-corruption. By doing so, business, as a primary agent driving globalization, can help ensure that markets, commerce, technology and finance advance in ways that benefit economies and societies everywhere. In Indonesia, XL was among the first companies to sign the Global Compact and has developed its commitment into sustainable activities. The CompanysCSRContributionin 2008and the Future Throughout 2008, XL spending for CSR activities was Rp 9,408,740,458, the largest proportion of which went to educational activities. Consistent with their commitment to implement sustainable CSR programs, for the next step they plan to continue to expand their reach based on their present focus.