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PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 44

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c. Others continued iii For the nine-month periods ended September 30, 2016 and 2015, the Group received proceeds from the insurance claim on lost and broken property and equipment, with a total value of Rp103 billion and Rp88 billion, respectively. The proceeds were recorded as part of “Other Income” in the consolidated statements of profit or loss and other comprehensive income. As of September 30, 2016 dan 2015, the net carrying values of those assets of Rp36 billion and Rp14 billion, respectively, were charged to the consolidated statements of profit or loss and other comprehensive income. iv In 2016, Telkomsel decided to replace certain equipment units with net carrying amount of Rp90 billion, as part of its modernization program. Accordingly, Telkomsel accelerated the depreciation of such equipment. For the nine-month period ended September 30, 2016, the additional depreciation expense amounted to Rp85 billion. In 2015, Telkomsel decided to replace certain equipment with a net carrying value amounting to Rp1,967 billion, as part of a modernization program. Accordingly, Telkomsel accelerated the depreciation of such equipment. For the nine-month period ended September 30, 2016 amounted to Rp279 billion. The impact of the acceleration of depreciation of certain equipment units will decrease profit before income tax in future periods as follows: Years Amount 2016 3 months 30 2017 30 In 2014, the useful life of Telkomsel’s buildings and transmission changed from 20 years to 40 years and from 10 years to 15 and 20 years, respectively, to reflect the current economic life of the building and the transmission. For the nine-month period ended September 30, 2016, the reduction in depreciation amounted to Rp183 billion. The impact of the changes in the estimated useful life of the buildings and transmission will increase profit before income tax in future periods as follows: Years Amount 2016 3 months 61 2017 198 2018 135 v Exchange of property and equipment In 2012 and 2011, the Company entered into a Procurement and Installation Agreement for the Modernization of the Copper Cable Network through Optimalization of Asset Copper Cable Network through Trade InTrade Off method with PT Len Industri “LEN” and PT Industri Telekomunikasi Indonesia “INTI”, respectively. In 2016 and 2015, the Company derecognized the copper cable network asset with net carrying value of Rp446 billion and Rp7 billion, respectively, and recorded the fiber optic network asset from the exchange transaction of Rp422 billion and Rp750 billion, respectively. As of September 30, 2016, Telkomsel’s equipments with net carrying amount of Rp64 billion will be exchanged with equipment from Nokia Siemens Network Oy and PT. Huawei Tech Investment, therefore, these equipments were presented as Assets Held For Sale in the consolidated statements of financial position. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 45

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