LONG-TERM INVESTMENTS continued PROPERTY AND EQUIPMENT continued

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 58

10. PROPERTY AND EQUIPMENT continued

c. Others continued In 2015, Telkomsel decided to replace certain equipment units with net carrying amount of Rp1,967 billion, as part of its modernization program. Accordingly, Telkomsel accelerated the depreciation of such equipment units. For the year ended December 31, 2015, the additional depreciation expense amounted to Rp1,410 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 274 2017 30 vi 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 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 59

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c. Others continued ix As of December 31, 2015, the percentage of completion of property under construction was around 58.49 of the total contract value, with estimated dates of completion between January 2016 and December 2017. The balance of property under construction mainly consists of buildings, transmission installation and equipment, cable network and power supply. Management believes that there is no impediment to the completion of the construction in progress. x All assets owned by the Company have been pledged as collateral for bonds Notes 19a and 19b. Certain property and equipment of the Company 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 60

10. PROPERTY AND EQUIPMENT continued