Revenues Total revenues increased by Rp5,824 billion, or 7.5,

As of December 31, 2014 2013 2012 Rp billion US million Rp billion Rp billion Net cash : provided by operating activities 37,736 3,047 36,574 27,941 used in investing activities 24,748 1,998 22,702 11,311 used in financing activities 10,083 814 13,327 13,314 Net increase in cash and cash equivalents 2,905 235 545 3,316 Effect of exchange rate changes on cash and cash equivalents 71 6 1,039 168 Cash and cash equivalents at beginning of year 14,696 1,187 13,118 9,634 Ending balance of disposed subsidiary - - 6 - Cash and cash equivalents at end of year 17,672 1,428 14,696 13,118 Year ended December 31, 2014 compared to year ended December 31, 2013

1. Cash Flows from Operating Activities Net cash provided by operating activities in 2014 was

Rp37,736 billion US3,047 million compared to Rp36,574 billion in 2013. The increase was primarily due to an increase of Rp7,549 billion, or 9.8, in cash receipts from customers, Rp404 billion, or 48.6, increase on our interest income received. This was partially offset by an increase in cash payment for expense by Rp5,707 billion, or 20.8, and increase in payment for value added tax- net of Rp493 billion.

2. Cash Flows from Investing Activities Net cash flows used in investing activities in 2014 was

Rp24,748 billion US1,998 million compared to Rp22,702 billion in 2013. This increase was primarily due to an increase of Rp5,154 billion, or 26.2 in acquisition of property and equipment, Rp2,121 billion placement in escrow account, and acquisition of long-term investments by Rp1,467 billion. This was partially offset by an increase of Rp8,466 billion or 370.0 on our placement in time deposit, a decrease in advances and other non-current assets by Rp783 billion, or 99.0 and proceeds from sale of property and equipment by Rp35 billion, or 7.5.

3. Cash Flows from Financing Activities Net cash flows used in financing activities was Rp10,083

billion US814 million in 2014 compared with Rp13,327 billion in 2013. This increase was primarily due to decrese in repayment of short-term borrowings by Rp1,840 billion, or 452.1. Increase of Rp1,589 billion, or 19.0, in cash dividends paid to our stockholders and an increase of Rp795 billion, or 17.0, in our cash devidens paid to non-controling stockholder of subsidiaries. Year ended December 31, 2013 compared to year ended December 31, 2012

1. Cash Flows from Operating Activities Net cash provided by operating activities in 2013 was

Rp36,574 billion US3,005 million compared to Rp27,941 billion in 2012. The increase was primarily due to an increase of Rp5,103 billion, or 7.1, in cash receipts from customers and from other operators of Rp528 billion, CASH FLOW STATEMENT OVERVIEW The following table sets out information concerning our consolidated cash flows, as set out in and prepared on the same basis as our Consolidated Financial Statements: 130 2014 Annual Report PT Telkom Indonesia Tbk Persero FINANCIAL AND PERF ORMANCE HIGHLIGHT MANA GEMENT REPOR T PREF A GENERAL INF ORMA TION OF TELK OM INDONE SIA MANA GEMENT’S DISCUSSION AND ANAL Y SIS CORPORA TE GO VERNANCE SOCIAL AND ENVIRONMENT AL RE SPONSIBILITY APPENDICE S or 13.2, due to the increase of our operating revenue and also due to the decrease in cash payment for our expense of Rp.6,211 billion, or 18.5. This was partially offset by an increase of Rp1,809 billion, or 32.4, in payment for income tax and cash payment to employees of Rp1,721 billion, or 21.1.

2. Cash Flows from Investing Activities Net cash flows used in investing activities in 2013 was

Rp22,702 billion US1,865 million compared to Rp11,311 billion in 2012. This increase was primarily due to an increase of Rp11,423 billion in acquisition of property and equipment. This was partially offset by a decrease of Rp1,720 billion, or 42.9, in placement in time deposit and an increase of cash received in divestment of subsidiary and associate company Rp926 billion.

3. Cash Flows from Financing Activities Net cash flows used in financing activities totaled Rp13,327

billion US1,095 million in 2013 compared to Rp13,314 billion in 2012. This increase by Rp13 billion, or 0.1, was primarily due to a increase of Rp2,368 billion in proceed from sale of treasury stock and a decrease of Rp1,744 billion, in payments for treasury stock. This was partially offset by an increase of Rp1,227 billion, or 17.2, in cash dividends paid to our stockholders and Rp1,083, or 30, to non-controlling stockholders subsidiaries due to the increase of our operating profit and a decrease of Rp1,271 billion obtain from additional bank loan. Obligation and Commitment

A. Contractual Obligation

The following table sets forth information on certain of our material contractual obligations as of December 31, 2014. Contractual Obligations By Payment Due Dates Total Less than 1 year 7 1-3 years 7 3-5 years 7 More than 5 years 7 Rp billion Rp billion Rp billion Rp billion Rp billion Long-Term Debts 15 16,853 5,328 5,035 3,059 3,431 Capital Lease Obligations 2 4,789 571 1,175 1,163 1,880 Operating Leases 3 29,373 3,847 6,791 6,426 12,309 Interest on Long-term Debts and Capital Lease Obligations 6 6,097 1,718 2,323 1,337 719 Unconditional Purchase Obligations 4 16,195 16,195 - - - Total 73,307 27,659 15,324 11,985 18,339 1 See Notes 18-21 to our Consolidated Financial Statements. 2 Related to the leases of the slot of the tower, property and equipment under RSA, transmission installation and equipment, data processing equipment, office equipment, vehicles and CPE assets. 3 Related primarily to leases of leased line, telecommunication equipment and land and building. 4 Capital expenditures committed under contractual arrangements. 5 Excludes the related contractually committed interest obligations. 6 See “Risk Management - Risk Factors –We are exposed to interest rate risk”. 7 Less than 1 year = 2015, 1-3 years = 2016-2017, 3-5 years = 2018-2019, more than 5 years=2020 thereafter. 131 2014 Annual Report PT Telkom Indonesia Tbk Persero