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PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 UNAUDITED AND FOR SIX MONTHS PERIOD ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 49

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b. Assets impairment i As of December 31, 2012, the Cash Generating Unit CGUs that independently generate cash inflows were fixed wireline, fixed wireless, cellular and others. As of December 31, 2012, there were indications of impairment in the fixed wireless CGU presented as part of personal segment, which was mainly due to increased competition in the fixed wireless market and that has resulted in lower average tariffs, declining active customers and declining Average Revenue Per User ARPU . The Company assessed the recoverable value of the assets in the CGU and determined that assets for the fixed wireless CGU were impaired amounting to Rp247 billion at December 31, 2012 and being recognized in the consolidated statement of comprehensive income under Depreciation and amortization . The recoverable amount has been determined based on value-in-use VIU calculations. These calculations used pre-tax cash flow projections approved by management covering a five-year period and with cash flows beyond the five-year period extrapolated using a perpetuity growth rate. The cash flow projections reflect management s expectations of revenue, Earning before Interest, Tax, Depreciation and Amortization EBITDA growth and operating cash flows on the basis that the fixed wireless CGU generates positive net cash flows from 2013. Management s cash flow projection also incorporates management s reasonable expectations for developments in macro economic conditions and market expectations for the Indonesian telecommunications industry. As of December 31, 2012, management applied a pre-tax discount rate of 12.3, derived from the Company s post-tax weighted average cost of capital and benchmarked to externally available data. As of December 31, 2012, the perpetuity growth rate used of 0.5, assumes that subscriber numbers may continue to increase after five years, while average revenue per user may decline such that the long-term growth will not be significant. If the performance of the fixed wireless CGU continues to decline or if management s initiatives are not performing as expected in the next financial year, analysis will be required to assess whether there will be further impairment next year. ii Management believes that there is no indication of impairment in the value of other CGUs as of December 31, 2012. c. Others i Interest capitalized to property under construction amounted to Rp42 billion and Rp44 for six months period ended June 30, 2013 and for the years ended December 31, 2012, respectively. The capitalization rate used to determine the amount of borrowing costs eligible for capitalization is ranging from 4.20-9.75 and 7.72-9.75 for for six months period ended June 30, 2013 and for the years ended December 31, 2012, respectively. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 UNAUDITED AND FOR SIX MONTHS PERIOD ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 50

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