POST-EMPLOYMENT HEALTH CARE BENEFITS PROVISIONS continued RELATED PARTY TRANSACTIONS

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 110

36. RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued

2015 2014 of total of total Am ount liabilities Am ount liabilities

h. Advances from customers and suppliers

Majority stockholder Government 19 0.03 19 0.03

i. Short-term bank loans Note 16

Entities under common control BRI 57 0.08 57 0.10 BNI 25 0.03 - - Bank Syariah Mandiri PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 111

36. RELATED PARTY TRANSACTIONS continued

c. Significant agreements with related parties continued

ii. Indosat continued The Company has been handling customer billings and collections for Indosat. Indosat is gradually taking over the activities and performing its own direct billing and collection. The Company has received compensation from Indosat computed at 1 of the collections made by the Company starting from January 1, 1995, as well as the billing process expenses which are fixed at a certain amount per record. On December 11, 2008, the Company and Indosat agreed to implement IDD service charge tariff which already took into account the compensation for billing and collection. The agreement is valid and effective starting from January to December 2012, and can be applied until a new agreement becomes available. On December 28, 2006, the Company and Indosat signed amendments on the interconnection agreements for the fixed line networks local, SLJJ and international and mobile network for the implementation of the cost-based tariff obligations under the MoCI Regulations No. 8Year 2006. These amendments took effect starting on January 1, 2007. Telkomsel also entered into an agreement with Indosat for the provision of international telecommunications services to its GSM mobile cellular customers. The Company provides leased lines to Indosat and subsidiaries, namely PT Indosat Mega Media and Lintasarta. The leased lines can be used by these companies for telephone, telegraph, data, telex, facsimile or other telecommunication services. iii. Others The Company has entered into agreements with CSM and Gratika for the utilization of the Companys satellite transponders or frequency channels of communication satellite and leased lines. Kisel is a co-operative that was established by Telkomsel PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 112

37. OPERATING SEGMENT

The Group has four main operating segments, namely corporate, home, personal and others. The corporate segment provides telecommunications services, including interconnection, leased lines, satellite, VSAT, contact center, broadband access, information technology services, data and internet services to companies and institutions. The home segment provides fixed wireline telecommunications services, pay TV, data and internet services to home customers. The personal segment provides mobile cellular and fixed wireless telecommunications services to individual customers. Operating segments that are not monitored separately by the Chief Operation Decision Maker are presented as Others, which provides building management services. No operating segments have been aggregated to form the operating segments of personal, home and others, while corporate operating segment is aggregated from business, enterprise, wholesale and international operating segments since they have the similar economic characteristics and similar in other qualitative criteria such as providing similar network services and serving corporate customers. Management monitors the operating results of the business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss and is measured consistently with operating profit or loss in the consolidated financial statements. However, the financing activities and income taxes are not separately evaluated and allocated to operating segment. Segment revenues and expenses include transactions between operating segments and are accounted at market prices. 2015 Total before Total Corporate Home Personal Others elimination Elimination consolidated Segment results Revenues External revenues 21,072 7,319 73,766 313 102,470 - 102,470 Inter-segment revenues 14,347 4,352 2,365 1,943 23,007 23,007 - Total segment revenues 35,419 11,671 76,131 2,256 125,477 23,007 102,470 Expenses External expenses 20,239 6,705 41,130 1,978 70,052 - 70,052 Inter-segment expenses 8,066 4,706 10,173 62 23,007 23,007 - Total segment expenses 28,305 11,411 51,303 2,040 93,059 23,007 70,052 Segment results 7,114 260 24,828 216 32,418 - 32,418 Other information Capital expenditures 10,007 4,172 11,321 901 26,401 - 26,401 Depreciation and amortization 2,708 1,203 14,531 92 18,534 - 18,534 Provision for impairment of receivables 560 297 148 5 1,010 - 1,010