Enterprise Risk Management ERM Governance

258 PT Telkom Indonesia Persero Tbk

6. Assessment of the Efectiveness of the implementation of risk management

Assessing the efectiveness of risk management implementation is done through the evaluation process, including: • Through Evaluationone-on-one discussion with business units as needed. • Through Workshop-sharing implementation and development of ERM with subsidiaries as needed • Through the Implementation of Risk Management Audit program as needed • Through Evaluation with the Risk Committee, Compliance and Revenue Assurance at BoD level as needed • Through Evaluation with the Planning and Risk Evaluation Monitoring Committee PREMC as needed

7. sharing session and recognition of external parties

In 2015, Telkom received a visit from external parties for an implementation of Risk Management, Internal Control, Process Management, Good Corporate Governance and Management of Insurance sharing session, among others, from: PT Semen Indonesia : January 11, 2015 PT Perkebunan Nusantara IX : February 15, 2015 Perum BULOG : March 11, 2015 Pembangkit Jawa Bali : May 19, 2015 PERTAMINA Patra Niaga : August 04, 2015 PT PLN : September 11, 2015 Other than the implementation of Risk Management in 2015, Telkom received recognition or awards from external parties, namely: No External institution Type of Award 1 PT SGS Indonesia Integrated Management System for Infrastructure management including: •ISO 9001:2008 Certiicate - Quality Management System •ISO 27001:2013 Certiicate - Information Security Management System •ISO 22301:2012 Certiicate - Business Continuity Management System • Maintain Continuity Competency Development. • Maintain consistency of communication and socialization. • Developing a mechanism for assessing the effectiveness of the implementation of Risk Management.

4. development of risk management Competence

In 2015, we have carried out the development of risk management competencies, including: No. Type of Training Date 1 Internal Control over Financial Reporting ICFR June 2015 2 Certiied Lead Auditor ISO 22301 Business Continuity Management System September 2015 3 Hedging September 2015 4 Emergency Flood Evacuation Response Simulation October 2015 5 Internal Auditor Business Continuity Management October 2015 6 Certiied Risk Associate December 2015 Besides through Classical Training, competence development is also done through socialization as well as related Workshops on Risk Management in the Oice Division environment and its subsidiaries.

5. tools usageinformation system

To perform the function of Risk Management, Telkom has provided the supporting infrastructure using applications tools information systems, among others: a. Generic Tools Enterprise Risk Management Online ERM Online that is used by the entire unit for management of Risk Assessment b. Speciic Tools for speciic risk management objectives, for example: • Fraud Management System FRAMES Application that is used for an early detection system of potential Customer Fraud • i-Library application which is managed by the Division Network of Broadband and is used for the management of the documentation system, namely the Integrated Management System • SMK 3 Online application managed by the Security and Safety Unit for the Health and Safety documentation management. • Security Safety Application managed by the Security Safety Unit to monitor the management of Physical Security • Telkomcare application for coordinating the Crisis Management Team